Debt financing vs equity financing explained

	Debt financing	Equity financing
Ownership	Keep 100% of your business	Share ownership with investors
Repayment	Fixed schedule with interest	No repayment required
Control	You make all decisions	Investors may influence decisions
Qualification	Requires income/assets/credit history	Based on growth potential
Timeline	Days to weeks for approval	Typically 3-6 months
Costs	Interest rates of around 6-15% APR (est. August 2025)	Equity dilution plus future profit sharing
Financial risk to you	Must repay even if business struggles	Investors absorb losses if business fails
Relationship	Ends when loan is repaid	Ongoing partnership