Equity Capital are represented by the funds that you raise within your business, so that you will be able to exchange for shares to another ownership to another company. Equity financing generally allows the businesses to be able to obtain the funds without having to incur debts and not having to make a payment of a certain amount within a certain time.
Debt Capital is funds that are borrowed by the business that will have to be paid back within a certain period of time with additional interest. Debt financing can be short term or long term. The lenders will not gain ownership to the business with debt capital.
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