Explore BrainMass
Share

Pros and Cons of a Debt Financing Option

What are the pros and cons of a debt financing option? How would you determine the right amount of debt for a company?

© BrainMass Inc. brainmass.com August 20, 2018, 1:27 am ad1c9bdddf

Solution Preview

Taking on debt means borrowing money for your business.

CONS a debt financing
- Debt means relinquishing some cash profits.

PROS a debt financing
- Major benefit for debt financing, unlike with equity financing, you'll retain full ownership of your business.
- The interest on business loans is also tax-deductible, and
- You'll ...

Solution Summary

The pros and cons of a debt financing option are explained.

$2.19