Debt vs. equity

- Unless you're one of the very lucky business people…who can grow their business through revenue alone,…you'll probably have to consider bringing in…extra cash into your business…and you can do this in two ways,…through debt or equity.…With debt, you borrow the money…and through equity, you give an investor a share…in the company for an infusion of cash.…There are pros and cons of raising money…via debt and equity,…and in reality, many businesses do both,…but let's dig into the fundamentals of each.…First up, definition.…

Financing means that you're getting outside money…into your business.…It can also be called fundraising or capitalization.…All the words mean the same thing,…getting an infusion of cash into your business.…Debt can come in the form of loans, lines of credit,…or if you're a really big company, through bonds.…Loans can come from small business specialist loans,…short-term loans,…or securitized long-term loans.…Interest rates will vary depending on…how risky your lender thinks you are.…Loans can also come from nontraditional sources,…