Understanding the key differences between debt and equity helps you make the right funding choice for your business. Here’s a simple breakdown: 

• In debt, you keep ownership, while in equity, you sell business shares to investors
  • In debt, you repay with interest, while in equity, investors earn returns through future profits
  • Debt involves fixed repayments, while equity offers flexibility with no repayment    obligations 
  • Debt increases financial risk, while equity may reduce control but adds strategic support 

Start by evaluating your cash flow, risk tolerance, capital needs, and long-term growth plans. If you can manage regular repayments, debt might work well. For early-stage or high-growth businesses, equity could be a better option. With our expert guidance on debt and equity helps you choose the right path. 

The main disadvantage is the obligation to repay, regardless of your business’s cash flow. High debt can increase financial stress, limit flexibility, and impact your creditworthiness. Missed payments may lead to penalties, legal action, or loss of business assets. 

Yes, a company can take back equity under certain conditions, such as unvested shares or through structured buyback agreements in Dubai. This must be outlined in the company’s equity documentation and done in compliance with local laws and shareholder agreements. 

It depends on the structure of the debt management plan. If payments are made on time, your score may improve over time. However, missed payments or closed accounts can temporarily lower your credit score.