As a business owner, an aspect of managing your company that you’re bound to run into is financing. Obtaining an infusion of capital can make a difference in your success by allowing you to purchase expensive equipment, increase your marketing presence, or hire a bigger staff. While an array of financing options exist for businesses, debt financing offers distinct advantages to you and your company. If you’ve been thinking of taking out a loan, check out these reasons that this type of financing gives you the freedom and flexibility to repay those funds in a way that fits your company’s unique situation.

Predictable Financial Planning

One of the major keys to financial planning in a company is being able to generally predict how much money flows in and out each budget period. Therefore, a useful aspect of financing debt is structuring a payment plan, allowing you to know exactly how much money you owe each period. With that security, you’re able to create a reliable budget and not worry about your repayments fluctuating from month to month.

Tax Benefits

For a business owner, every financial bonus goes a long way. For many companies, the principle and interest payments on a loan qualify as business expenses and, therefore, are tax deductible. This break on a company’s income taxes can provide far-reaching advantages over a financial period.

Company Ownership

An element which makes this type of financing different from another option, such as equity financing, is that you retain ownership of your entire company. Because you are not accepting funds in the form of investments, you are only required to repay the loan you acquired, plus any accrued interest. The individual or organization loaning you the funds does not own a stake in your company, cannot expect to make business decisions, and is not entitled to a portion of the company’s profits. For this reason, many business owners opt for debt financing instead of equity financing when at all possible.

This avenue for paying back debt not only offers tremendous advantages but can also come from a variety of lenders. You can borrow from and finance through banks, the Small Business Association, lines of credit, or even cash advances. Additionally, you can select from a wide range of rates and terms depending on your budget. Especially if you’re just trying to get your business off the ground, this financing option gives you the opportunity to expand the way you need to and repay the way you want to.