Write an analysis that compares and contrasts the two financing options in detail.

A major difference is in the amount of control you give up by using debt or equity. Equity financing allows shareholders to have certain voting rights, and they may even be able to influence decisions on behalf of the business. However, the rights vary depending on what securities are sold, and how much money is invested. On the other hand, creditors who loan money do not typically receive any influence or decision-making authority – this means that they must rely on their contractual agreement to receive payments as outlined by the loan agreement.

Risk exposure is lower with debt as the lender only faces financial loss if the borrower fails to repay. However, equity investors could face higher losses in case market conditions cause business operations to be unfavorable. Additionally, taxes may also apply differently for each option – for example debts issued may be tax deductible while dividends paid out from profits acquired through equity investments can result in higher taxes for shareholders.

Overall both methods come with their own advantages and disadvantages which must be carefully weighed before deciding which one makes more sense for an individual’s specific situation.