Title: The Advantages of Long-Term Debt Financing | Small Business - Chron.com
Headings: The Advantages of Long-Term Debt Financing
The Advantages of Long-Term Debt Financing
Conserves Operational Cash Flow
Provides Leverage for Owner's Equity
No or Minimal Investor Interference
Build Business Credit
Additional Advantages

Content: If the company generates a net income of $150,000 for the year, the owner's monetary return would be $50,000 and her return on equity would be 50 percent. If instead, the owner had contributed $300,000, her return on equity would only be 16.7 percent. No or Minimal Investor Interference
When a business utilizes long-term debt, the need to pursue equity investment from potential business partners or investors declines. As long as your loans remain in good standing, lenders have no say in your business, leaving full control to the management, according to Funding Circle. Investors have rights and decision-making input and sometimes have plenty to say about how you run the business. With no outside investors, you avoid this potential interference. Build Business Credit
If you obtain long-term financing options, you increase the likelihood of qualifying for additional debt financing, according to ShopKeep. Even SBA-guaranteed or personally guaranteed loans can help your business build credit in its own name. If you can build your company's credit, you can reduce the reliance on your personal credit. This not only helps you personally, but it increases the value of your business as a sellable asset separate from you.