Question

Which channel would you recommend for a family winery? (Select one) Self-Financing Equity Financing Non-Partner FI...

Which channel would you recommend for a family winery? (Select one)

Self-Financing Equity Financing Non-Partner FI Loan

Reasoning for this choice(details)

HINT: choose Non-Partner FI Loan

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Homework Answers

Answer #1

Debt financing is when you borrow money from a lender and repay it over a period of time with interest. The most popular method of debt financing is when you take a loan from a bank or NBFC. For millions of businesses across the country, debt financing is a popular way of raising funds.

Non partenr FI loan is a better choice due to following reasons:-

1.When you raise money through a loan, you are not parting with any shares of your company, which means your ownership remains intact. Hence the reward/profit will be of owner only (So willl be the losses)

2.With loans you also have the flexibility to use the money for almost any purpose.

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