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One very popular source for debt financing is through commercial banks. Another source for debt financing is through a non-bank source such as asset-based lenders. These lenders although smaller then most commercial banks and finance companies are able to finance to the smaller businesses by having owner's put up collateral to insure the repayment of the loan. (Scarborough & Zimmerer, 2003)
As for Custom Stitches, the best option would with debt financing. If Andy was to borrow his capital with a source of equity he may have a harder time finding friends and family members to borrow $700,000 from...
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