Key Considerations in a Debt vs. Equity Financing Decision: A Guide for Aspiring Commercial Solicitors

There are two kinds of money a company can raise: debt, and equity. While clients themselves - in conjunction with their banker/accountant - normally have a clear view of which capital structure to opt for, as future commercial solicitors you need to understand the rationale behind such decisions, and be able to support the execution of these decisions. Each financing option comes with its own set of benefits, drawbacks, and implications for a company's financial strategy and operational control. This article is a quick guide explaining all of the above.