Donald Lai is a founder, sole director and shareholder of a textile company, Famitex Pte Ltd (Famitex), which is incorporated in Singapore. The company manufactures uniforms for schools, factories and hospitals in Singapore and the ASEAN region. It owns a factory in Woodlands and another factory in Malaysia. Due to an outbreak of a global pandemic, Donald expanded his operations to include the manufacturing of hospital grade masks and personal protection equipment (PPE). He quickly established a reputation for reliable quality for these products. Thus, there has been an increase in global demand for Famitex's products, especially from the European Union and the United States of America markets. Donald wants to increase Famitex's production capacity by building more factories in the region and installing state of the art equipment. He requires a substantial sum for this expansion. Donald is a very cautious businessman, though he does not mind borrowing from the banks. He had been using the company's retained profits for past expansions, so the gearing ratio (debt to equity) is naturally low. On the other hand, Donald is worried about bringing in additional investors into his private limited company where he has enjoyed sole control since its incorporation. He especially does not like to have the hassle of issuing complicated papers like "prospectuses".

Question : Illustrate to Donald how Famitex Pte Ltd can raise funds via equity and debt for its business needs. In your answer, you are expected to take into consideration the advantages and disadvantages of each type of fund raising; Donald's aversion to having high gearing ratios; as well as the hassle of issuing complicated papers like "prospectuses"