Debt financing means raising money from individual or institutional investors willing to give you capital (to be repaid with interest) in order to start growing your business. While debt can be a scary word for many entrepreneurs, taking out a loan may be the best way to finance a new business, provided you'll have the cash flow to make payments. Financing with debt allows you to remain in full control of your business, something not possible when you finance by giving equity to investors.
In this section you can access the resources to help you decide whether debt financing is the right option for you, choose the type of loan that works best for your circumstances, and use debt strategically to strengthen your business. Read articles about the different types of debt you may incur, the best way to enter agreements with your investors and more.
Browse helpful legal documents for your investment, such as the Debt Financing Term Sheet, which will help you lay out the terms of your loan. By getting your financing agreement in writing, you can prevent confusion down the line, and be sure to secure and interest rate and payment schedule that meets your interests and business needs. With the right debt financing procedure, you will be able to grow your business enough to repay your loans and maintain a steady stream of revenue in the process.