Equity and Debt Financing Alternatives



Equity and Debt Financing Alternatives

Introduction

Equity and Debt Financing Comparison

There are two forms of financing one is equity and the other is debt financing. Both of them have their importance and are used in different scenarios. In the Equity, financing the money is lent to the business in exchange for the equity. This is done by the shareholder, who wants to bring in more cash into the business (Benjamin & Margulis 2005). This is mostly done by the Companies with high profitability, conventional management or companies with poor credit rating. This form of financing can be done ...