Two financing means are usually used to reduce the losses of the manufacturer as well as the supply chain’s profits resulted from the supplier’s capital constraints: one is the equity financing，and the other is the debt financing. The paper analyzes the manufacturer’s optimal financing and the supplier’s optimal production decisions，and then compare the supply chain performances using these two means. It is shown that the supplier is sure to accept the debt financing，while the supplier will accept the equity financing only if some conditions are satisfied. With equity financing，if the supplier’s initial capital is smaller than a critical value and the fraction of the supplier’s profit the manufacturer shares is higher than a critical value，the production at the capital-constrained supplier will be restored to the optimal level without capital constraints. With debt financing，if the supplier’s initial capital is larger than a critical value，the production of the capital-constrained supplier will be restored to the optimal level without capital constraints. Equity financing is optimal for the performances of the manufacturer and the supply chain when the supplier’s initial capital is small and the fraction of the supplier’s profit the manufacturer shares is high. However，when the supplier’s initial capital is large，debt financing is better. Finally，a numerical study is given to demonstrate the conclusions.