Whether you’re planning to launch a startup or want to expand your business, you are going to need money. Debt and equity financing are two different financial strategies you can opt for. Incurring debt entails borrowing money for your business, whereas gaining equity means injecting your own or other stakeholders cash into your company.
Debt Financing
Quite a few business owners are reluctant about borrowing from a financial institution, as it means cut in cash profits. But it could be a good option so long as you have sufficient cash flow to pay back the loans, plus interest.
Equity Financing
Small business owners often opt for equity financing because they are not sure about qualifying for a loan, or they dont want to part with cash profits to service the repayment. Investors and partners can provide equity financing.
Advantages of debt financing:
You do not have to part with any ownership or future profits of your business. Your lender has no control in how you run your business.
You can keep your business profits in the company, and enhance the long term value, or use those profits to pay a return...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
