For Subscribers

To Borrow or Not to Borrow

For many new business owners, that is the question.

By Amy Fennell Christian • Sep 1, 2002

Opinions expressed by Entrepreneur contributors are their own.

( - Cash, moolah, dough,greenbacks--everyone needs it, especially a first-timeentrepreneur. You could have a great idea, a thorough business planand customers just waiting for you to open your doors, but if youdon't have the funds, you can't get your business off theground.

So what's a 'trep to do? Unless you want to raise themoney yourself through part-time jobs, yard sales and the like,there are basically two ways to finance a new business: debtfinancing, usually through a loan or credit card, and equityfinancing, in which investors buy "stock" in yourcompany. Both have pros and cons, as 'treps Angeil Brown andDan Villa recently found out.

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