What factors should businesses consider while determining sources of funding?

[Kane]

Businesses should consider factors like cost, flexibility, and control when determining funding sources. For instance, while bank loans offer lower interest rates, they may require collateral and strict repayment terms. Equity financing provides capital without debt but involves sharing ownership and decision-making. Crowdfunding offers access to a large pool of investors but requires a compelling pitch and marketing effort. Evaluating these factors helps businesses choose the most suitable funding option.