There are primarily two types of capital – Debt and Equity. 

Debt is capital that needs to be paid back. A personal or business loan is an example of debt capital. An individual or institution lends money to a business with an understanding that the money needs to be paid back.

It is similar to a personal loan in that you need to make interest and principal payments on a regular basis. Debt capital can be structured in several ways.

If...
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