Criteria Debt Equity Description [ Select ] Borrowing money from a lender and repay the money over time with interest. Selling ownership interests or from retaining earnings. [ Select ] Selling ownership interests or from retaining earnings. Borrowing money from a lender and repay the money over time with interest.   Advantages [ Select ] Retain ownership and control, predictable repayment schedule, interest is tax-deductible, etc. No debt repayment, long-term support/guidance from investors, potential for ongoing investments, shared risk, etc. Dilution of ownership, may give up control, share profits with investors, may affect decision-making, etc. Regular payments to repay the debt, interest, could default on the loan or lose collateral, limited flexibility, etc. [ Select ] Regular payments to repay the debt, interest, could default on the loan or lose collateral, limited flexibility, etc. No debt repayment, long-term support/guidance from investors, potential for ongoing investments, shared risk, etc. Dilution of ownership, may give up control, share profits with investors, may affect decision-making, etc. Retain ownership and control, predictable repayment schedule, interest is tax-deductible, etc. Disadvantages [ Select ] Dilution of ownership, may give up control, share profits with investors, may affect decision-making, etc. Creditworthiness, collateral, revenue stream that makes repayment possible, established track record, etc. Regular payments required to repay the debt, interest, could default on the loan or lose collateral, limited flexibility, bankruptcy etc. Important to find investors who share the same vision, growth potential, long-term goals, etc. [ Select ] Dilution of ownership, may give up control, share profits with investors, may affect decision-making, etc. Regular payments to repay the debt, interest, could default on the loan or lose collateral, limited flexibility, etc. Creditworthiness, collateral, revenue stream that makes repayment possible, established track record, etc. Important to find investors who share the same vision, growth potential, long-term goals, etc. What should be considered when selecting a Financing Option [ Select ] Investors who have the same vision, growth potential, long-term goals, etc. Important to find investors who share the same vision, growth potential, long-term goals, etc. Willingness to give away ownership, when outside expertise is needed, etc. Credit worthiness, collateral, revenue stream that makes repayment possible, etc. [ Select ] Willingness to give away ownership, when outside expertise is needed, etc. Credit worthiness, collateral, revenue stream that makes repayment possible, etc. Investors who have the same vision, growth potential, long-term goals, etc. To maintain control, established creditworthiness, revenue to repay the money, etc. When should you use each one [ Select ] Investors who have the same vision, growth potential, long-term goals, etc. Credit worthiness, collateral, revenue stream that makes repayment possible, etc. To maintain control, established creditworthiness, revenue to repay the money, etc. Willingness to give away ownership, when outside expertise is needed, etc. To maintain control, established creditworthiness, revenue to repay the money, etc.