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What is a debt-to-equity ratio, and what does it mean for my ability to attract financing?

April 26, 2017ability attorney debt-to-equity financing law firm law office Lawyer mean ratio

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What is a debt-to-equity ratio, and what does it mean for my ability to attract financing?

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The debt-to-equity ratio is the relationship between the money the owner has borrowed for the business and the funds the owner has invested in the business. Generally, the more money that an owner invests in the business, the easier it is to attract additional investors and financing.