3. Entrepreneurs almost always require starting capital to move their ideas forward to the point
where they can start their ventures. Determining the amount of money that is actually needed
is tricky because that requirement can change as plans evolve. Other challenges include
actually securing the amount desired and getting it when it is needed. One of the ways of
obtaining finance is through debt financing.
a. What is debt financing? (3 marks)
b. State three (3) advantages if debt financing? (3 marks)
c. State two (2) disadvantages of debt financing (2 marks)
