Equity capital

Differences exist between grow capital in the form of debt and equity grow capital. Equity grow capital involves exchanging a portion of ownership (shares) in the company for funding. While this may reduce the owner’s equity, it also establishes a strategic relationship between the company and the investor, who has a vested interest in maximizing growth and profitability. Debt grow capital, on the other hand, does not require giving up ownership or equity. It is structured as loans or cash advances.