Today’s post is the first in a series that will explore the advantages and disadvantages of different types of financing, specifically debt vs. equity. In this initial post, I’ve highlighted some of advantages and disadvantages to using equity financing instead of debt financing in your small business.
It seems as though many start-up businesses are eager to jump on the equity bandwagon without ever considering debt financing. While investor money comes without the hassle of repayment or interest, it also comes with the significant burden of having to share profits with the investor. Despite the fact that you have to share profits with your investors, there are a number of advantages to using equity financing for your business.
Lower risk. Generally,…