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Funding your company with debt as opposed to giving up equity insures that you receive all of the returns made in your company. If you give up equity (or in other words only partially own your capital), then you will not make as much as you normally would have if you.

Funding you company can be very scary, as if you default in your loans it will look very bad on your credit report (whether it be your personal, or business credit). So if you do plan on taking out debt to keep your capital (and maximize your returns) make sure you 100% believe in your idea.

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6y ago
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