Introduction to Credit-Source Funding There are many different sources of funding avallable for a company to be able to purchase cAPEX or invest in projects, each with pros and cons. Which of the following is an advantage of using debt as a source of funding? Select all that apply. It doesn't have additional financial commitments It won't dilute existing shareholder's value or change ownership percentage The cost of debt is usually lower than the cost of equity It's very liquid and always accepted When financing is of the "term" variety, meaning it's not operating credit, it can be structured as either amortizing or as non-amortizing. Which of the following loans is most likely to have the lowest total interest cost? Unsecured, non-amortizing loan Secured, non-amortizing loan Unsecured, amortizing loan Secured, amortizing loan