We can connect you with sources of debt-based financing so that you can obtain access to immediate cash flow for your business. Our network of investors is eager to lend and our pain-free funding process can quickly get you the business capital that you need.
Debt-based financing is a term used to describe a method for companies to raise money for working capital or capital expenditures Debt financing can incorporate both secured and unsecured loans, and in return for the loan, the individual or investor will become a lender. They will receive a guarantee that the principal and interest on the debt will be repaid pursuant to the agreed-upon terms.
What is Debt Financing?
Simply stated, debt financing is the specialized term for borrowing money from an outside funding source with a guarantee to repay the principal plus the agreed-upon rate of interest. Many people think about a bank when considering this type of borrowing, yet there are numerous debt financing options available to small business owners. In the USA., the interest on this type of debt may be a tax-deductible expense, which means that the interest cost could be less than the stated interest if the company is profitable.
Advantages of Debt Financing
Maintaining Ownership of your Business
While you may be tempted to take on an ownership investor for your developing business, there are other options that are much more beneficial. If you prefer to call the shots for your business, it makes sense to obtain debt financing. Although the lender may charge you interest on what you borrow, they will not get involved with how you run your day-to-day operations.
What is the interest rate on Debt Financing?
The interest rate charged on debt financing reflects the amount of risk that the lender assumes by providing the money. For example, a lender is much more likely to charge a startup company a higher interest rate than it would an established company which has shown several years of profit.