Whether or not your business would be better suited for equity financing or debt financing depends on your situation and goals. Startups typically rely on equity financing, which means you find an investor or venture capital firm to invest in your business. This type of financing requires you to give up a portion of the control of your company, so anyone who wants to retain total control may find that debt financing works better for them. Debt financing means taking on debt, like a small business loan, and paying it back over an agreed-upon term. Unlike equity financing, you’ll have to make monthly payments, and some small businesses may have a hard time affording them. Weigh all the pros and cons between equity and debt financing before deciding which one would fit your business goals best. Also, make sure that your business credit scores are high enough to qualify for financing.