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All companies need money to pay for taxes, the purchase of assets, payroll, and much more. If they don’t generate enough cash from their current operations, they may need to raise capital. Companies have a choice of whether to raise capital by issuing debt or equity. Debt for a company can take the form of a loan or bonds. Taking on debt tends to be risky since debt incurs both interest payments and a necessary repayment of the principal. Usually, companies will only take on debt (or more accurately, they will only be granted debt from a lender) if the lender is confident in their ability to pay it back. This is determined by looking at the company’s credit quality, their income, and the value of assets that can be used as collateral. _______________________ 0:00 Difference between Debt and Equity 0:25 Forms of Debt 0:46 Equity Offering Definition 1:09 Debt Financing and Equity Financing 2:18 Debt vs Equity Questions _______________________ Talk with an advisor by emailing advisor@financestrategists.com Learn more by visiting the page: https://www.financestrategists.com/te... [insert specific URL] Check out the main Finance Strategists YouTube Page here: / @financestrategists4468 _______________________ Message from the founder: Here at Finance Strategists, we believe one of the best ways you can help someone is with their finances. We create helpful informational videos and content to help people take control of their finances. Finance Strategists plans to launch "Finance Strategists for Kids" where we teach fundamental financial concepts to kids in a clear manner allowing them to generate margin in their lives to bless other people. We believe raising up a generation of leaders with financial freedom can change individual lives, neighborhoods, countries, and the world. _________________________ 🔔 Hit the bell next to Subscribe so you don't miss a video! 📧 Fill out this form to receive the "Finance Word of the Day" in your inbox! 👨🏻💻 Watch our newest vids! - https://bit.ly/FS-Recently-Added 💃 To book Ranie for voiceover or spokeswoman, email info@financestrategists.com _________________________ Follow us on Socials: Website: FinanceStrategists.com Instagram: @financetrategists Twitter: @FinStrategists LinkedIn: https://bit.ly/FS-linkedin Facebook: https://bit.ly/Facebook-FS