---
title: What is the difference between equity and debt financing?
description: Learn more about the best financing option for your company.
---

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# What is the difference between equity and debt financing?

## Learn more about the best financing option for your company.

At a high level, debt means you temporarily borrow capital from somebody. At some point in time, that money is paid back to the investor, and you keep all future income for your business. Equity is dilutive, meaning founders give away a portion of their ownership stake and potential future upside.

While equity financing typically dominates tech fundraising, debt financing and other forms of non-dilutive capital can help companies grow while retaining more of your business’s future value. 

Debt and equity are just different forms of raising capital -- neither one is necessarily better or worse for your company.  At this time, Hum Capital only offers debt financing. 

To learn more, read this article on [“How to Choose Between Venture Debt, Equity for Growing your Business”](https://humcapital.com/how-to-choose-between-venture-debt-equity-for-growing-your-business/), or use our [Cost of Equity calculator](https://humcapital.com/cost-of-equity-calculator/) to see the potential impact on your ownership of taking equity capital.

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