Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used financing.

Debt financing

Explanation:

Debt financing occurs when an entity borrows money for the purpose of working capital or capital expenditure.

The borrower will pay back the loan with interest on a due date.

The other way finance can be obtained is through equity financing that requires sale of shares and repayment to investors is not required.

In this scenario Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa.

Since repayment to the credit union will be made this is a form of debt financing