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Finance - Coggle Diagram

- - - - No repayment or interest
      - No loss of control over business
      - Very flexible
    - - Shareholders may prefer dividends
        
        Opportunity cost
      - Less attractive for possible investors
      - Shareholder dissatisfaction
  - - - No debt
      - Investor expertise
      - No regular payments
    - - Diluted control
      - Dividends
      - Slower decision making
  - - - Flexibility
        
        The seller can choose which asset to sell
      - Quick way to raise capital
    - - Not able to use the asset anymore
      - Process can be complex
  - - - Lower interest rates than overdrafs
      - No loss of control over business
      - Useful for expansion
    - - Collateral requirements
      - High amount of debt
      - Need business plan
- - - - Especially for start-ups and new busiensses
- - - - Paying on credit
      - Decreasing Receivables Days