--- title: Equity vs Debt: When to Use Each | daily.dev description: A discussion of when businesses should finance activities with debt versus equity, arguing that certainty of outcome should determine the choice. Predictable,... canonical: https://daily.dev/posts/equity-vs-debt-when-to-use-each-nxfe2r6tr twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Equity vs Debt: When to Use Each | daily.dev og:description: A discussion of when businesses should finance activities with debt versus equity, arguing that certainty of outcome should determine the choice. Predictable,... og:url: https://daily.dev/posts/equity-vs-debt-when-to-use-each-nxfe2r6tr og:image: https://api.daily.dev/og/posts/NXFe2R6TR.png og:image:alt: Equity vs Debt: When to Use Each og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Equity vs Debt: When to Use Each **[notJust.dev](https://daily.dev/sources/notjustdev)** · 1 min read · 0 upvotes · 0 comments ## Summary A discussion of when businesses should finance activities with debt versus equity, arguing that certainty of outcome should determine the choice. Predictable, well-understood transactions with known returns should be financed with debt, while uncertain ventures like entering new geographies or launching new products should be financed with equity. The point is illustrated with a reference to a hedge fund that ran into trouble from overleveraging to buy volatile equity positions. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [The market has ‘switched’ and founders have the power now, VCs say](https://daily.dev/posts/the-market-has-switched-and-founders-have-the-power-now-vcs-say-6fhcs6rjt) · TechCrunch · 0 upvotes · 0 comments - [Taking Money off the Table](https://daily.dev/posts/taking-money-off-the-table-z31zgf7wa) · Hacker News · 2 upvotes · 1 comments - [Translate tech debt into business risk](https://daily.dev/posts/translate-tech-debt-into-business-risk-bh7ahgedl) · LeadDev · 3 upvotes · 0 comments - [Equity for Europeans](https://daily.dev/posts/equity-for-europeans-ia5fjd5xz) · Armin Ronacher · 4 upvotes · 0 comments --- Tags: [#venture-capital](https://daily.dev/tags/venture-capital) [View this post on daily.dev](https://daily.dev/posts/equity-vs-debt-when-to-use-each-nxfe2r6tr) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Equity vs Debt: When to Use Each","url":"https://daily.dev/posts/equity-vs-debt-when-to-use-each-nxfe2r6tr","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/equity-vs-debt-when-to-use-each-nxfe2r6tr"},"datePublished":"2026-08-13T07:38:54.821Z","dateModified":"2026-08-13T07:39:12.007Z","description":"A discussion of when businesses should finance activities with debt versus equity, arguing that certainty of outcome should determine the choice. 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