Business Financing and the Capital Structure
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Any investor looking to start a business always worries of whereabouts of getting a capital and how to sustain the business once it has rolled out. There are usually two options that prevails in all the scenarios. Debts or equity financing. It is therefore important for us to understand these two terms before we explain the best option. Debts is similar to loans. This is borrowed money from banks, friends or peers or other money lending institution and is usually secured with a collateral. Equity on the other hand is money you obtain from your savings or family members and is usually not a subject to refunding….words 723