When evaluating debt vs equity financing, there are some key aspects to consider to determine which is best for your business. These factors include qualification requirements, costs, repayment terms, and effects on control of your business. Additionally, you will need to consider how quickly you need funding and the ease of access to those funds.
What Debt Financing Is
Debt financing provides funding for your business by borrowing from a lender. This funding comes in various forms, but always involves an agreed-upon method of repayment.