Whether you’re a local business or a large international company, getting access to the right type of finance can be crucial if you want to grow, invest and create jobs. The key to deciding what’s right for your business is to understand the different options available to you.
There are two main categories of finance – debt finance and equity finance. Once you've decided which is right for your business, you can start to look at the specific borrowing options available to you.
Debt finance means you borrow money and pay it back with interest over time. It can be used for anything from funding short-term working capital to acquiring long-term assets. As your business needs change, your debt finance needs also change and you may even use a combination of different debt products at any one time.
Equity finance means you raise capital through the sale of shares in your business and pay it back in dividends or capital growth. It can be a way to finance different stages of your business, from starting up to experiencing a high-growth phase. As they own a part of your business, investors become shareholders, which means they maintain a longer-term interest.