What is debt financing?

What young start-ups have in common is usually a great idea and… a lack of funds to implement it. Unfortunately, even a revolutionary idea will not ensure the success of a project, and raising money to develop and create a product that is even at the MVP stage is not an easy undertaking. Nonetheless, entrepreneurs who believe in their company and are determined to succeed have a variety of ways to cover the usually not inconsiderable needs. Besides, this applies not only to new companies, but also to those that have been in business for many years and now find themselves in need of raising funds to combat payment bottlenecks, for example. A company can raise money in two ways: through own financing and through debt financing.
Table of contents:

What is debt financing?


Debt financing – examples


Factoring – a flexible and fast solution

Operating leases – a good way to get company equipment

Trade credit – a simple agreement with the seller

Important!

Debt financing costs


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