SHARE YOUR THOUGHTS! *** If you were start a business, how will you raise capital for your business? What are the challenges that you will encounter? Further, what are the advantages in using equity funding or debt funding? Key Takeaways Capitalization refers to raising funds for the operation and growth of the business. There are two main ways to raise capital: equity funding and debt funding. Bank loans are typically the most common and the largest source of capital for small businesses