Answer

How do I fund business growth without losing equity?

Debt funding lets you grow while keeping full ownership — you repay the money but give away no shares. For a profitable business with a clear return, borrowing often beats selling equity.

2 min read

Keep your sharesDebt route

Repay, don't diluteThe trade

Clear returnWhen it fits

Why debt keeps control

Selling equity raises money you never repay, but permanently dilutes your ownership and hands a say to investors. Debt is the opposite: you repay it, but keep 100% of the company and the upside. For a business with a clear, fundable return, that upside retained is often worth far more than the interest paid. See debt vs equity for scaling.

When it fits

Debt suits growth with a measurable payoff — new capacity, stock for confirmed demand, an acquisition that adds profit. Check the return beats the cost with the return-on-borrowing calculator. Equity suits early, high-risk ventures with no cash flow to service debt. If you can service a repayment and the growth pays for itself, borrowing keeps the business yours.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Is debt always better than giving away equity?

Not always. Debt suits businesses with cash flow to service repayments and a clear return. Very early or high-risk ventures with no reliable income may need equity. But for a trading, profitable company, debt usually preserves far more value.

Can I combine debt and equity?

Yes — many growing businesses use a mix. The key is not to over-leverage. Match debt to fundable, return-generating growth, and reserve equity for the parts too risky or early to service with repayments.