What is one of the benefits of equity capital compared to debt capital?

One of the key benefits of equity capital compared to debt capital is that it provides operational freedom and less liability. When a company raises funds through equity, it does not incur an obligation to make regular repayments, which is a common feature of debt financing. This lack of a fixed repayment schedule gives the business more flexibility in managing its operations and capital, allowing it to invest in growth opportunities without the pressure of meeting scheduled debt obligations. Furthermore, since equity does not require interest payments, companies can better allocate their resources toward expanding their core business activities rather than servicing debt. Additionally, equity holders often bear the risk of business performance, meaning that during downturns, the company is not financially burdened by fixed costs, which can enhance its resilience.