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Debt, Equity Financing - Coggle Diagram
Debt
Advantages
Quick source of money
Can repay in different ways
Different types of debt
Flexible payment periods
Greater control
Greater earnings for existing owners
Interest is tax deductable
Disadvatages
Greater risk
Regular payments
Interest
Limitations around purpose
Equity Financing
Disadvantages
Takes time to create income
Lowers earnings for existing owners
Ownership is diluted - less control
Expensive process
Higher expectations on returns
Advantages
Safe soruce of money
No mandatory repayment
No interest
Less risk