What is the difference between equity and debt funding?
An example of an AI chatbot conversation about understanding equity and debt funding.
What is the difference between equity and debt funding?
Equity funding involves raising capital by selling shares of your company, while debt funding means borrowing money that must be repaid with interest.
Can you explain the advantages of each funding type?
Sure! Equity funding doesn't require repayment, which can ease cash flow, but it dilutes ownership. Debt funding allows you to retain full ownership but requires regular repayments.
What are some common sources of equity funding?
Common sources include venture capital, angel investors, and crowdfunding platforms.
And what about debt funding sources?
Debt funding sources include bank loans, bonds, and lines of credit.
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