Final answer:
Debt financing can be used to fill the gap between an equity contribution and a bank loan.
Step-by-step explanation:
In order to fill the gap between an equity contribution and a bank loan, an investor can use debt financing.
Debt financing refers to borrowing money from a bank or other financial institution to finance a business. This can be in the form of loans or lines of credit. By taking on debt, the investor can increase their available capital without giving up additional equity in the company.
For example, if an investor has made an equity contribution of $100,000 towards a business and needs an additional $200,000 to fund the project, they can secure a bank loan for that amount, effectively filling the gap between their equity contribution and the total funding needed.