How Debt Financing is Advantageous and Disadvantageous for Business Growth
With a specific end goal to grow, it's fundamental for entrepreneurs to tap financial resources. Business owners can use several kinds of financing resources, basically broken into two categories. One is debt which involves borrowing money to be repaid, plus interest on the on the other hand is equity which means raising money by selling premiums in the company. AmirSohail Rammay , a finance manager in Al Saif Motors, specialized in arrangement of debt financing and hence expressing his views by telling pros and cons of debt financing for business growth. Pros of Debt Financing After borrowing the money from bank and making the agreed-upon payments on time which tends to end of obligation to lender, you can maintain your business anyway you choose without outside interference. By reducing the real cost of the loan to the organization, interest on the debt can be deducted on the company's tax return. Increasing debt capital is less t...