Page 104 - Winning The Credit Game Bundle (CK Patrick)

where we can obtain tens of thousands of dollars in business
financing within six months!

DEBT VS. EQUITY

Capital moves in our economy in two forms: debt and equity.
“Debt” is when you owe someone something which you are
expected to repay later or face adverse consequences. “Equity” is
the valuation of ownership, where someone has actually used
their infusion of capital to purchase something, like ownership
of your company or your assets.
Debt is the most commonly discussed form of capital in
credit discussions, as it is generally the way that credit cards,
loans, and other common types of credit lines function.
However, investors and certain types of “secured” financing will
actually trade money for ownership of your business or assets
which they can take or sell or make legal decisions for if they so
desire.
This is important because giving up equity means
giving up…

CONTROL

One major reason people start their own businesses is a desire
for control over their craft or their career. While some people
start businesses with the specific intention of selling them to a
wealthy buyer after the business has become profitable, most
entrepreneurs want to be able to run their business their way for
some time.
Having all the control means that you also have all the finan-
cial responsibility. If you give up some of that financial responsi-
bility, such as by bringing on investors or taking out credit lines
that are secured with your assets, you are giving up control.
Anyone to whom you give equity in return for capital can have a
say in how your business is run.
Even some bank loans may come with requirements that the

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