Debt Financing for Startups – Espresso Capital

Starting and scaling a business requires capital, and while equity financing often gets the spotlight, debt financing can be a strategic and less dilutive way for startups to fund their growth. Debt financing involves borrowing funds that must be repaid over time, usually with interest. Unlike equity financing, where investors take ownership in exchange for capital, debt financing allows founders to retain control over their business. In this guide, we will explore debt financing for startups, its advantages and risks, different types, and how to determine if it’s the right choice for your business.

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