A Guide to Debt vs. Equity Financing Debt vs. equity financing. Which is the better choice for your business? There is no easy answer to this question. The answer depends on several factors, including your business’s stage, industry, and personal preferences. However, this guide will explore the pros and cons of debt and equity financing…
What is marginal profit? Marginal profit is a concept in microeconomics that refers to the increase in a company’s profit from selling one additional unit. It is expressed as the difference between marginal revenue (the increase in revenue from one additional unit) and marginal cost (the increase in the cost of producing one additional unit)….
How does cross collateralizing a loan work When you borrow money, the lender will usually require some collateral. This allows them to recoup their losses if they cross default on the loan. Cross collateralization is when you use more than one asset as collateral for a loan. For example, if you have a home equity…
