How do I choose between debt and equity financing?

I'm trying to decide whether to finance my startup with debt or equity. What should I consider?

You should consider factors like your business model, cash flow, and how much control you want to retain.

What are the pros and cons of each option?

Debt financing allows you to retain ownership but requires regular repayments. Equity financing gives you capital without repayment but dilutes ownership.

How do I assess my cash flow to make this decision?

Analyze your revenue projections, expenses, and how much cash you need to sustain operations. A positive cash flow can support debt.

Are there specific industries where one option is better than the other?

Yes, tech startups often prefer equity due to high growth potential, while established businesses may opt for debt to leverage their assets.