Advantages, If bankruptcy or insolvency occurs, debt providers have priority before equity providers., Funds are readily available and can be acquired at short notice, Interest payments are tax deductible, Flexible payment periods and times of debt are available, It will not dilute the current ownership in the business, Disadvantages, Security is required by the business, There is an increased risk if debt comes from financial institutions because interest and other charges may increase, Regular repayments have to be made, Lenders have first claim on any money if the business ends in bankruptcy, Debt can be expensive.

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