Private Equity vs. Traditional Funding: What’s Best for Lebanese Firms?
Choosing the right funding option can shape the future of a business. For companies in Lebanon, this decision often comes down to two main paths: private equity and traditional funding. Both options offer value, but they work very differently. Understanding these differences helps business owners make smarter, long-term financial choices. Understanding Traditional Funding Traditional funding usually refers to bank loans, credit facilities, or overdrafts. These options are familiar to many Lebanese firms and often feel like the safer route. Businesses receive capital and repay it over time with interest, while retaining full ownership. This type of funding works well for companies with stable cash flow and clear repayment capacity. However, it comes with fixed obligations. Regardless of market conditions, repayments must be made on schedule. For growing firms or those navigating uncertainty, this pressure can limit flexibility and slow expansion plans. How Private Equity Works Pri...