How to Finance Your Business Growth

Quick Summary
Finding a way to finance your business’s growth is vitally important, but it’s not necessarily a simple thing to do. Each option has pros and cons, and you should consider all of them carefully before deciding how, when and how quickly to grow your business. When considering debt and equity financing, realize it’s not necessarily an either/or decision – you could use both. Striking the right balance between the two is often the best solution.

Advantages vs. Disadvantages of Debt Financing

Debt financing typically involves taking a loan from a bank or other financial institution.

Advantages vs. Disadvantages of Equity Financing

The main alternative to debt is equity financing, which frees a small business owner from owing money. But equity financing comes with some loss of control as you seek to expand your business.

Advantages vs. Disadvantages of Venture Capital

Venture capital is a common form of equity financing. It can be suitable for fairly young small to midsize companies with good growth potential.

Advantages vs. Disadvantages of Leveraged Finance

Leveraged finance refers to a heavier-than-normal amount of debt financing. This typically takes a different form than a bank loan or line of credit.
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