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FAQs for Capital Seekers > I want to raise capital; do I want debt or equity capital?

I want to raise capital; do I want debt or equity capital?

posted on July 5, 2023

It depends on risk and return.  If there is cash flow in the business that can afford to repay principal and interest, debt does not change ownership in the business.  If the use of capital is riskier or unproven, debt may not be available, and then equity will be an alternative at the cost of giving up some ownership