Debt capital provides funding that is repaid over time, typically with interest. Banks, credit unions, and Community Development Financial Institutions (CDFIs) offer loans and other financing options that can help businesses launch, expand, purchase equipment, or manage working capital without giving up ownership.

Equity capital provides funding in exchange for an ownership stake in the company. Angel investors and angel groups, venture capital firms, and private equity investors typically invest in businesses with strong growth potential, providing capital—and often expertise, connections, and strategic support—to help companies scale.