When it comes down to your business financing there is two words that you will want to consider; equity or debt. For example, debt financing, is when you have credit cards and bank loans. It is the money that you borrow from another source for your business. All your business costs should be paid with this money; however, you are required to pay the money back to the lender(s). A monthly interest fee will be attached to this fee and you generally repay the amount on a monthly basis. It is very important that you organize all your financing and make the monthly payments.
The other word that you will want to keep in mind is equity. When you have equity financing this is all the funds that you are investing into the business to get shares of your business. You will not have to repay the money back, you just lose the control over the business.
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