At its most basic form, finance comes in two types: debt and equity.
Debt Financing
Debt financing is money that will be paid back on specified terms. A bank loan would be a type of debt financing.
Equity Financing
Equity financing is giving up a portion of the ownership of a business in exchange for financing. A venture capitalist is someone who is interested in equity financing. They will invest money in a private business in return for equity in the company.
