Startup Funding Espresso -- Debt Options for Startups
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. As your company grows and the equity becomes worth more, there comes a time to switch over to debt funding. There are several forms of debt to consider.\xa0 Each one is used for a different application.\xa0 The primary options are as follows: Traditional bank loan - requires a personal guarantee and is most often used to launch a company. Line of credit - once you have revenue, this can be used to smooth out the uneven bumps in your cash flow. Equipment financing --if you need equipment for your business this is a good way to finance it as it reduces your fundraise requirements. Revenue-based funding - once you have a steady flow of revenue, you can use revenue-based funding to accelerate the growth as you pay back out of the revenue stream. Factoring/Accounts receivable funding - once you have a steady book of business, you can borrow against the accounts receivable line. Venture debt - once you have substantial revenue, you can raise debt funding rather than equity funding, as it will be cheaper in the long run.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Please subscribe, share, and leave a review. Music courtesy of