It is important to recognize that there are many ways to finance your business.
Financing can come in many forms, and often a combination is used.
Debt financing and equity financing are the two main forms. Debt Financing Equity Financing Alternate Forms Debt financing represents funds that must be paid back with interest. Generally, it is secured by the assets of the business and in some cases the personal guarantees of the owners. The following is a list of the advantages and disadvantages of debt financing. May require personal guarantee Equity financing represents a long-term commitment to the business.