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08 May 2017 10:00

8 Business Loan Basics You Need to Know

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All business financing from outside the business falls into two categories: debt and equity. Debt financing involves borrowing a fixed sum from a lender. Equity financing is essentially trading a certain amount of capital for a percentage of ownership. Lenders take less risk and make money through interest and fees. Investors take more risk and make money through returns on their investments.

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