There are two types of financing available to start and grow businesses: equity and debt. Debt is a familiar concept to everyone. You borrow other people’s money and pay it back. Equity, on the other hand, is ownership – an investment in the business by the owners of the company. Most small businesses are financed with a combination of both debt and equity. Most businesses are typically financed with a combination of equity and debt. The more money owners have invested in their business, the easier it is to attract financing.