Raising Business Finance – Debt versus Equity

In order to expand, it’s necessary for business owners to tap financial resources which typically fall into two categories – Debt or Equity. In this article, Neil Large, Corporate Partner, explores the pros and cons of each. Debt financing: Involves borrowing money to be repaid plus interest, while Equity involves raising money by selling an interest in your company. Debt also has a set time when the finance must be paid back, a set interest rate, and typically fixed or variable payments (capital and interest) that that need to be met each month. Many entrepreneurs prefer to use debt funding to facilitate business growth as there are no hidden costs…