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This involves taking on debt from external sources, such as banks or other financial institutions. The company repays the loan over a given period of time with interest. While debt financing is typically more affordable than private equity, it may also involve a high risk of default if the company fails to make regular interest payments. Yet another option is to use an equity crowdfunding platform. Equity crowdfunding is an increasingly popular way for companies to raise funds for large projects. Companies create a profile on a crowdfunding platform, list their project, and offer a percentage of ownership in the company in exchange for investment. The upside to this option is that it allows small investors to get involved in the project for a relatively small sum.
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