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Financing Face-Off: Debt vs. Equity One offers more money while the other allows for more control. The Money Guy breaks down the pros and cons of each option.
By Joe Worth
This story appears in the March 2015 issue of Entrepreneur. Subscribe »
Q: Should I go after debt financing or new investors?
There are benefits to both: Giving up equity to investors typically results in more money to grow the business than you'd ever get from a lender, but debt allows you to retain control. That makes it tough to decide which route to pursue. Consider these factors.
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