Financing Face-Off: Debt vs. Equity

One offers more money while the other allows for more control. The Money Guy breaks down the pros and cons of each option.

By Joe Worth • Mar 18, 2015

Opinions expressed by Entrepreneur contributors are their own.

Q: Should I go after debt financing or new investors?

There are benefits to both: Giving up equity to investors typically results in more money to grow the business than you'd ever get from a lender, but debt allows you to retain control. That makes it tough to decide which route to pursue. Consider these factors.

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