Entrepreneur

Financing Face-Off: Debt vs. Equity

One offers more money while the other allows for more control. The Money Guy breaks down the pros and cons of each option.
Source: frankieleon | Flickr

Q: Should I go after debt financing or new investors?

There are benefits to both: Giving up equity to investors typically results in more money to grow the business than you’d ever get from a lender, but debt allows you to

You're reading a preview, sign up to read more.

More from Entrepreneur

Entrepreneur2 min read
#3 on the Franchise 500: McDonald's Had a Bumpy Year, But Still Leads in Innovation
From the remote island of Mauritius to the distant deserts of Kuwait, you can’t escape the Big Mac. The world is home to more than 38,000 McDonald’s. So what’s left to conquer?  Try Silicon Valley. Ronald McDonald has landed in tech land, not with bu
Entrepreneur2 min read
#2 on the Franchise 500: Delivery and Booze Are Boosting Taco Bell's Sales
The #2 company on our Franchise 500 list is now looking to find its next big success overseas.
Entrepreneur2 min read
#7 on the Franchise 500: Planet Fitness Knows You Don't Want to Go to the Gym
The #7 company on our Franchise 500 list attracts first-time gym-goers with low prices and a shame-free environment.