Should you use debt or equity to grow your business?

Loans and equity financing come with different terms and conditions, says David Prosser.

A person holding a bundle of money.
Small businesses raised 130% more in the first three quarters of 2021, compared to the same period in 2020.
(Image credit: © Getty Images)

Small businesses raised over £14bn of equity finance during the first three quarters of 2021, new data from the British Business Bank reveals, a 130% increase on the same period of 2020. Small businesses’ borrowing, meanwhile, actually declined last year.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.