Be Careful When Funding Via Debt

Qoins App • Feb 25, 2022

It’s crucial to focus on the capital structure to ensure the business is structured and financed in a sustainable manner and on a stable base to support and enable growth. This requires a clear financing strategy—one that balances equity and debt funding coupled with the correct use. It’s also essential to match funding needs to the appropriate types of debt since a mismatch can place significant pressure on the business. When taking on debt, review the terms and obligations. Debt vs. raising capital via investors are two very different approaches to growth. If debt is the path of choosing you must have a revenue plan that can fulfill those obligations. Research grants, programs, and investors in your specific niche before taking on debt for your company. There are plenty of options if you are looking for them!

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