Watch this video and comment now: capitalmatchpoint.com , Hosted by Mark Bass, MBA, The Capital MatchPoint, 770.433.8250, capitalmatchpoint.com… A common question is, What type of capital structure is best for my company? The answer to that question is individually dependent upon your company, its stage of development and its needs. In the broadest sense there a two types of financing, debt financing and equity financing. Lets take just a minute to consider the broad implications of both. Debt financing is the infusion of capital by an investor in exchange for an agreement or repayment and interest over a specified period of time. Debt is usually backed by collateral and subject to other restrictions the investor may impose to secure their position. Common examples of debt capital are loans and the issuance of bonds. Debt may be an attractive means of securing capital for your company because you are not required to give up equity in exchange for the infusion. However, carrying debt on your balance sheet requires that you have sufficient cash flow to make periodic interest payments, projected resources to pay off principal at the time of maturity and collateral necessary for securitization. Debt financing is many times not an option for early stage companies because of lack of positive cash flow. An exception could be debt put in place alongside owners cash for the purchase price of hard assets, such as plant equipment or real estate, thats liquidation price would be …