Funding My Business: Debt Vs. Equity

<p>Guests:</p> <ol> <li>Sandra Glasgow:&nbsp; Founder of Biztactics Limited &amp; Co-Founder of First Angels &amp; Banker</li> <li>Kevin Foreman: Country SME Relationship Specialist at JMMB.</li> </ol> <p>Welcome to Your Business Matters, a podcast of EXIM Bank Jamaica where we bring thought leaders together on thought-provoking ideas and methods to help grow your business</p> <p>Many businesses have had to pivot to protect their profits and stay afloat.&nbsp; In order to be effective, businesses need cash flow to fund operations and as the economy tightens, an entrepreneur's&nbsp; cry is often about the options available for financing. There are two basic types of funding available to small businesses. These are debt financing and equity financing. Just like purchasing a car via a loan or using a credit card, debt financing is dependent on the entrepreneur's ability to repay monies borrowed with interest. Equity financing on the other hand requires zero loan repayments &nbsp; but will require the entrepreneur to sell shares&nbsp; of her company to her investors. Figuring out how to finance your business is a very important decision that may come with&nbsp; daunting consequences, so how do you decide between the two?&nbsp; Very few have mastered the skill of debt leveraging in business so careful risk assessment is always advised before one steps into the bank or attempts to pitch&nbsp; their business to potential investors.&nbsp; Today on Your Business Matters, we venture into the business funding tour with Sandra Glasgow, Founder of Biztactics Limited &amp; Co-Founder of First Angels &amp; Banker, and Kevin Foreman, Country SME Relationship Specialist at JMMB&nbsp; as our guide.</p> <p>Some of what we discussed include:</p> <ol> <li>Loss of company control and equity financing.</li> <li>Cost of debt and equity financing to small businesses.</li> </ol> <p>We also touched base with a member of our audience <strong>Ariff and Davine Butler</strong>&nbsp; who posed this question to our guests “ If a client appli