Debt Vs. Equity Financing - Research Article from Encyclopedia of Management

This encyclopedia article consists of approximately 3 pages of information about Debt Vs. Equity Financing.
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Debt vs. equity financing is one of the most important decisions facing managers who need capital to fund their business operations. Debt and equity are the two main sources of capital available to businesses, and each offers both advantages and disadvantages. "Absolutely nothing is more important to a new business than raising capital," Steve Jefferson wrote in Pacific Business News (Jefferson, 2001). "But the way that money is raised can have an enormous impact on the success of a business."

Debt Financing

Debt financing takes the form of loans that must be repaid over time, usually with interest. Businesses can borrow money over the short term (less than one year) or long term (more than one year). The main sources of debt financing are banks and government agencies, such as the Small Business Administration (SBA). Debt financing offers businesses a tax advantage, because...

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This section contains 692 words
(approx. 3 pages at 300 words per page)
Buy the Debt Vs. Equity Financing Encyclopedia Article
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