is equity financing better than debt 
the most important benefit of equity financing is that the money does not need to be repaid however the cost of equity is often higher than the cost of debt the bottom linecompanies often require outside investment to maintain their operations and invest in future growth any smart business strategy will include a consideration of the balance of debt and equity financing that is the most cost effective equity financing can come from various sources regardless of the source the greatest advantage of equity financing is that it carries no repayment obligation and provides extra capital that a company can use to expand its operations 