Equity Vs Debt Financing: What Is Cheaper In The Uk?

There are a number of elements that go towards making a successful business. These include the likes of a strong work ethic, good employees and of course, capital. When a business is raising capital for its needs, they usually have two types of financing: equity and debt. The majority of companies will use a combination of the two as both come with distinct but separate advantages. The principal two benefits come in the fact that equity financing comes with repayment obligations, whereas debt financing doesn’t require giving up any kind of ownership of the business.

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