Regardless of the type of business you are running, you will frequently need money. Most of the time, you will need cash urgently when experiencing growing pains. The reality on the ground is that getting money for small businesses is difficult. Tighter lending rules from banks and traditional lenders and a scaling back from investment by angel investors has left small businesses nearly unable to secure financing.
Small businesses can choose various types of funding. Two of the most common funding options are equity and debt financing. To know which financing option would be suitable for you, it’s important to know their difference.
Overview of Debt Financing
When you select debt financing, you are simply getting a loan that will have to be paid back with interest. Some common examples of debt financing include using a credit card, buying a car or buying a …