MUSINGS

Growing a business requires investment capital. When  companies are scaling , they need money to launch products, hire employees, assist customers, and expand operations. There are numerous ways to raise capital, and each will have a different impact on your company and the pace at which you grow. The most common way to raise capital is through either equity or debt. But what do each of these entail?  Leverage  is the term used to describe a business's use of debt to finance business activities and asset purchases. When debt is the primary way a company finances its business, it's considered highly leveraged. If it's highly leveraged, the debt to equity ratio tends to be higher. The debt to equity ratio is a simple formula to show how capital has been raised to run a business. It's considered an important financial metric because it indicates the stability of a company and its ability to raise additional capital to grow. It is important to note the debt to equ...