Financing: Financing comes in two types: debt and equity. Debt financing means borrowing with interest, while equity financing trades a portion of your company for cash. In debt, you owe money whether the business succeeds or not. In equity, investors risk losing money if it fails, but gain more if it succeeds . So, equity financing costs more for success and less for failure. COMPREHENSION QUESTIONS Mark the following statements as True or False. Equity financing means investors risk losing money if the business succeeds.