Why is profits a useful source of finance for the organic growth of a business?

What are the pro's and cons of using the profits the business make to fund the growth of a business. i.e why is it better than using a bank loan

Pro's:
- Not adding debt means not adding risk.
- More freedom in operation, without reporting to lender.

Con's:
- Not adding debt means potentially not capturing all opportunities.
- Limiting growth may be fatal if competitor capturing important market share.

Tags

　　Debt Financing 　　Capital Investment 　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds

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