IN SEEKING CAPITAL TO FUEL YOUR COMPANY'S GROWTH, also consider debt financing for implementing your business-growth strategies. Debt plays an important role in the implementation of the business-growth plan, especially if the growth strategy you've selected for your company involves purchasing assets, inventory, or equipment that can serve as collateral for the loan. The use of debt in the capital structure (commonly known as leverage) will affect both the valuation of your company and its overall cost of capital. The determination of the proper debt-to-equity ratio for your rapidly growing company will depend on a wide variety of factors, which include:
* the risk of ...