Financing models are frameworks that outline how funds are raised and allocated for projects or businesses. They can include various methods such as debt financing, where money is borrowed and repaid with interest, and equity financing, where ownership shares are sold to investors. Each model has its advantages and disadvantages, depending on the specific needs and goals of the organization. These models help organizations assess their financial strategies and make informed decisions. For instance, a startup might choose venture capital to gain quick funding, while a more established company may prefer bank loans for stability. Understanding these options is crucial for effective financial planning.