Cofounder / Partner at Lendzi.
getty
As a small-business owner, you should never borrow more money than you need. Debt can be a constant drain on your companys cash flow, and unless you have the principal reserved or can generate the needed profits, you may face problems when that debt becomes due. As a cofounder of a lending business, I believe there are many ways debt can be preferable to equity financing, in which youll have to sell off part of your business to an investor to generate funds. Here are the ways that debt can help your business more than equity financing might.
You Keep Control
The primary benefit that debt offers over equity is that you wont have to hand over a portion of your actual business to a separate pers…
Read the full article at: https://www.forbes.com/sites/forbesbusinesscouncil/2023/01/19/how-debt-can-help-your-business-more-than-equity-financing/