Debt syndication and equity funding are two distinct routes businesses use to raise capital, each with its own implications. Debt syndication involves borrowing from multiple lenders under a structured agreement, offering the advantage of retaining ownership while securing large-scale funding. It’s ideal for businesses seeking capital without diluting control but comes with repayment obligations and interest costs.
On the other hand, equity funding involves raising capital by selling a stake in the company, which brings in investors and shared ownership. While it reduces financial burden from repayments, it requires giving up some control. Choosing the right path depends on your company’s goals, stage, and risk appetite.
