Business Financing Tools

Debt financing involves borrowing money from financial institutions, such as banks or credit unions, which must be repaid over time with interest. This can take various forms, including term loans for larger investments or lines of credit for short-term cash flow needs. Debt financing allows businesses to retain full ownership while providing the necessary capital to manage operations or expand

Equity financing is the process of raising capital by selling ownership stakes in the company to investors. This can include venture capital and angel investing, where investors provide funds in exchange for a share of the company's profits and decision-making power. While this method does not require repayment like debt financing, it does dilute existing ownership and control

Mezzanine financing is a hybrid form that combines elements of both debt and equity. It typically involves a loan that may convert into equity if certain conditions are met, making it an attractive option for businesses that have exhausted traditional debt options but are not ready to give up significant equity. This type of financing can help bridge the gap between debt and equity funding