Startup Funding Espresso -- Loans
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity funding is just one source of funding for your startup. There are many others such as loans. Loans are debt instruments that must be repaid. Startups can find it difficult to get a traditional loan from a bank. The Small Business Administration offers several loan types for early-stage companies.\xa0 These loans come with personal guarantees and cannot be closed out with the dissolution of the business. There\u2019s also debt through the use of credit cards and microloans. It\u2019s difficult to use debt to pay for your core product development.\xa0 Debt makes sense when you have some revenue coming in to pay for the loan.\xa0 There are other types of debt including accounts receivable factoring in which you raise money on what customers owe you. There\u2019s also equipment financing in which the equipment collateralizes the debt. Factoring works when you have paying customers and want to shrink the cash float from the time you build the product till the time you receive payment. Equipment financing works well if you need machinery to build your product or run your business. \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: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group