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    Pros and Cons of a Debt Financing Option

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    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 March 4, 2021, 8:03 pm ad1c9bdddf

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    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.