Business Financing and the Capital Structure
It can be a daunting task for any business to decide the best financing option when they are in need of capital to expand their businesses. There is variety of financial resources that businesses can utilize to expand. These categorized into two, the debt and equity. For the debt option, the business borrows money to be repaid back--for example the bank loan. Equity involves a business selling interest to investors in the company. There are several advantages of the debt option. When the lender write a check, he/she does not come back to claim the equity in business and the relationship ends ...