Hey! When starting your own business, one of the most important things to consider is the finances. Not just what you earn or how you spend the money, but also where the funding for your business will come from.
When it comes to business funding, there are two main types: debt funding and equity funding.
Debt funding is, essentially, a traditional loan with interest. This type of funding allows for quick capital access, but the loan will have to be repaid regardless of what happens with your business.
Equity funding, where funds come from outside investors, only requires repayment if your business succeeds. However, in return for funds, investors may require some involvement in business decisions.
For more information about business finances, visit southernbank.com/business.