Think of this as borrowing money but from outside your business. It's like when you ask your friend for money because your pocket money's run out.

• What? Money from selling company's shares.
• Who? Buyers = Shareholders (they sometimes get dividends - like a bonus!)
• Fun Fact: Public companies sell shares on the "stock exchange" (like a huge global market).
  • Did you know? The oldest one is the London Stock Exchange! 🇬🇧

Pros

• Permanent money source. Shareholders can't just ask for their money back.
• No interest payments. Yay for saving money!

Cons

• Shareholders want dividends when the company does well.
• Public company ownership can change hands like passing notes

• What? Money borrowed from banks.
• Types of Interest
  • Fixed: same rate always.
  • Variable: can go up or down like a roller coaster based on market conditions.

Pros

• Quick and specific loans.
• Payback spread out. Like having longer to finish homework!
• Big companies can get lower interest rates.

Cons

• Must pay back, even if business is like when you’re having a bad day.
• Need to pledge something (like your bike) before getting the loan.
• Not paying back? Say goodbye to your pledged items!
• Variable rates can suddenly rise, making it harder to repay.

• What? Banks let you spend more than you have.

Pros

• Great for short-term needs, like when you need just $1 more for that burger.
• You only pay interest on what you've overspent.

Cons

• Banks can demand payback anytime.
• Interest rates might skyrocket without warning!