Types of Finance (Debt (Debt is money that is borrowed from other sources)…
Types of Finance
Debt is money that is borrowed from other sources
No additional owners to share profit with.
Establishes a credit history.
No risk of other owners taking over business.
There are usually high interest rates.
No additional owners to expand skill.
Long Term Examples
Short Term Examples
Equity finance is money that comes from the shareholder's personal account
May attract more owners with more skills
More people to share the profit with.
Other owners make end up taking over the business.