Debt & Equity Finance
Credit given to businesses tends to fall into one of two categories: debt financing or equity financing. Debt financing is essentially a straightforward loan: once it is repaid you have no obligation to the lender.
Equity financing is when an investor or group of investors are prepared to offer a business a large amount of capital in the form of a loan, in return for a share of the ownership (or equity) of the firm. If you are searching for a loan, you do not need to choose only one type of financing; it is possible and even advisable to gain both debt and equity financing, as this spreads the risk for all parties involved and means that you can benefit from the relative advantages of both.
For further details see:
