Non-dilutive funding is a financing tool businesses can deploy to fund their operations. Non-dilutive funding differs from dilutive financing options in that the business is not giving up equity (diluting their ownership) in exchange for funding.Pros:- No equity dilution – Because companies aren’t giving up an ownership stake in exchange for capital, debt financing helps founders maintain control over their business. - Cheaper – While debt funding has to be paid back, the overall cost is far less than equity financing as future profits are all yours.- Leverage – While debt financing requires revenue, it allows you to convert current and future revenue to leverage larger amounts of capital to power your growth.Cons:Debt is senior to equity in the capital structure which means debt lenders have priority in claims in the event of a bankruptcy. - Harder to qualify for – Because debt lenders aim to minimize risk, qualifying for debt financing can be harder than equity financing.- Liability – Some lenders require a personal guarantee as a backup which could mean founders are personally liable for repayment in the event of business failure. - Warrants/Covenants – Some lenders include covenants(conditions) that have to be maintained as part of their funding requirement. Common covenants include the right to purchasing equity or pre-determined debt-to-equity ratios.