What is the difference between debt financing and equity financing?
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What is the difference between debt financing and equity financing?
Debt financing involves borrowing money that must be repaid over time, typically with interest, such as through loans or bonds. Equity financing, on the other hand, involves raising money by selling shares of the company, allowing investors to own a part of the business in exchange for their investment.
In summary, the key difference is that debt financing creates a financial obligation to repay, while equity financing involves giving up a portion of ownership in the company. If you need more in-depth assistance, feel free to check the extended services page!