The Cost of Equity Capital

Why borrowing at 20% may be ‘cheaper’

When you take money from investors to build your business, it costs something. The true ‘cost’ of that investment money, or capital, can be difficult to determine depending on the financing.

The primary ways for people to give you capital are either:

1. Lend you money via debt

2. Invest in your business via equity

3. A combination of debt and equity

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