What are the pros and cons of debt funding?
An example of an AI chatbot conversation about the advantages and disadvantages of debt funding.
What are the pros and cons of debt funding?
Debt funding can provide quick access to capital, but it also comes with risks. Would you like to know more about the advantages?
Yes, what are the main advantages?
The main advantages include maintaining ownership control, tax benefits on interest payments, and the potential for growth without diluting equity.
What about the disadvantages?
Disadvantages include the obligation to repay the debt, potential cash flow issues, and the risk of default, which can harm your credit.
How can I decide if debt funding is right for my business?
Consider your business's cash flow, growth potential, and ability to manage debt. A financial advisor can also help you evaluate your options.
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