Equity vs. Debt Financing: What to Consider
Whether you’re crafting an initial business plan, expanding into new markets, or focused on meeting this week’s payroll, solid funding decisions can keep your company on the right trajectory.
In addition to cash generated by operations, small businesses often get infusions of cash from two primary sources: equity and debt. Which type of financing makes the most sense for your business? Take a look at the possible pros and cons of each:
Questions to ask when considering finance options
When determining which available financing options are the most suitable for your business, consider asking yourself these questions:
While your financing choice will ultimately depend on what’s available to your business, understanding the nuisances of both debt and equity financing will help guide you in making a more informed decision.