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The Bootstrapped Startup’s Guide to Debt Financing

Lighter Capital

Some founders may choose to spend months pursuing equity funding from angel investors and venture capitalists, while others leverage debt financing to grow quickly without giving up equity or control too soon. If you’re looking for an alternative to venture capital to grow your startup, this is a great place to start!

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5 Tips for Managing Debt at a Growing Startup

Lighter Capital

Though acquiring and managing debt can be a risky endeavor, structured planning and tracking goes a long way to help founders minimize those risks. Use the following tips to manage startup debt and maintain fiscal stability. Set up a comprehensive debt spreadsheet This is the cornerstone of effective debt management.

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The Twitter Buyout: Is Elon Musk a Madman or a Genius?

Brian DeChesare

15% to 30%) or it starts growing revenue more quickly (20-30% rather than 10-20%) or, better yet, both. You do need a Debt Schedule , and a Net Operating Loss Schedule is relevant here, but I wouldn’t build in more than that. And forget about the principal repayments (there’s 5% amortization on the Margin Loan and 1% on the Term Loan).

EBITDA 111
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What Startups Need to Know About Seeking Financing During the Pandemic

Lighter Capital

Here are some considerations to keep in mind as you evaluate the best financing options for your business—today, and in the long-run as you continue to reach for growth milestones. Debt financing meets the current needs of startups While COVID-19 has been highly disruptive, it hasn’t lessened the need for startup funding.

Finance 52
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Short-Term Business Loans: Can Fast Financing Help Your Startup Grow?

Lighter Capital

Short-term financing (12 months or less), which includes merchant cash advances (MCA) and merchant financing, often attracts startup founders looking for lower capital costs and quick access to cash — but those benefits can fade quickly if the loan terms don’t line up with what the business needs. repayment cap for 12 months.

Finance 59
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How To Manage Your SaaS Startup’s Cash Burn

Lighter Capital

Always have a plan for your best- and worst-case scenarios, whether that’s having a line of credit in case of an emergency or securing financing so you can start your next fiscal year with two to three years of runway. Pay close attention to the term length and payment terms if you’re considering debt financing.

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What are Debt Warrants and How Do They Work for Startups?

Lighter Capital

In many cases, the stock will immediately start selling above the warrant’s strike price. Debt warrant example: Roku Here’s a real-life example of how debt warrants work. On its first day of trading, Roku started with a share price of $15.78 — already above the venture lender’s strike price.