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Yokav Yokav
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6 years ago
What is the difference between debt and equity financing?
Textbook 
Business Essentials, Canadian Edition

Business Essentials, Canadian Edition


Edition: 8th
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6 years ago
Debt financing involves borrowing funds. With debt financing, the borrower is required to repay the amount of the loan plus interest charges. In contrast, equity financing refers to money invested in a business in exchange for an ownership interest. Equity investors are interested in profits and how they will be distributed. With equity financing, there is not a locked-in financing charge as there is with debt financing.
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