Business Financing FAQ

Need Professional Help? Talk to a Lawyer.


What are the main differences between borrowing money and selling ownership interests in my business?

If you take out a loan, you will repay the money over time (usually monthly), with interest. The lender won't receive an ownership interest in your business, and you won't have to share any of your future profits with the lender.

By contrast, if you raise money by selling equity (ownership interests), you won't have to make these monthly payments or repay the investment at any particular date. Instead, if your business is profitable, you'll have to share those profits with your investors, generally in proportion to the percentage of the business they own.

For more information on whether borrowing money or raising it from investors makes more sense, seeĀ  Loans and Equity Investments Compared.

Get Informed

Empower yourself with our plain-English information

Do It Yourself

Handle routine tasks with our products

Find a Lawyer

Connect with a local lawyer who meets your needs

The fastest, easiest way to find, choose, and connect to business lawyers