The answer has a little less to do with the current economic climate than it does with what the company is trying to do within the framework of the business model. What is happening in the economy only means a stronger position is needed when going after these types of capital.
Equity Investment means that you are willing to sell part of your idea to bring in capital to help build the company. Today that will mean; how good is the team? have they ever raised capital before? what will the capital be used for to build shareholder value? what is the exit plan? These questions must be answered in a bullet proof fashion, meaning no holes in the story.
Debt Financing is collateral based, relatively easier to obtain, ultimately less expensive to the entrepreneur, and doesn’t have partnership strings attached. But it relies on liquid collateral such as; real estate, revenue (in the form of account receivables), or equipment. These forms of collateral can be quickly turned back into capital in case of a default, so their value can be borrowed against. In most cases, but not all, you need to have a company that is already making sales, has a fairly good track record both personally and with the business. With invoice factoring, an early stage company with little or no track record but creditworthy invoices can easily obtain financing to help grow the business.
Both of these methods need to be thought out and have a solid strategy regarding obtaining and using the capital. To read more about the differences between Debt vs Equity capital read this article.