Original Content: Business Upside
What is the difference between debt and equity financing?
Understanding the concept better is essential to understand what each one means.
Every business must have some extra or surplus cash to run without hassles. So, you have two options, debt financing, and equity financing. What are Debt and Equity Financing?
Debt financing
In this type of financing, you borrow to arrange finances. The loan can be either secured or unsecured, and you must pay back the loan within the loan term. These include the following.
Term loans
SBA loans
Line of Credit
Merchant cash advance
Invoice financing
Equipment financing