What is Debt Financing

Insights on venture debt.

Month: August 2018

Understanding the Risk of Debt Financing

Do the Benefits Outweigh the Risks? There are many benefits of debt financing. Staying in control of your business’ day-to-day operations as well as its long-term goals. Regaining control of your business if equity is already in employees’ or investors’ hands. Extending your cash runway between fundraising rounds. Supplementing an existing strong cash flow to …Read More

Three Flexible Debt Financing Advantages for SaaS Companies

We recently explored four strategic reasons why companies take on debt as opposed to other forms of financing, like equity financing or bank loans, debt financing provides a financial foundation for SaaS companies to achieve certain goals. These were situational and relative to where SaaS companies stood in their growth journey. Here, we’ll explore three …Read More

Four Reasons Why Companies Take on Debt

Wait, Isn’t Debt a Bad Thing? You’re borrowing money that has to be repaid. You also have to pay interest on that debt, resulting in having to pay back more than what was borrowed in the first place. This can’t be a good thing! So why would companies take on debt when those funds could …Read More

What Are the Real Uses and Benefits of Debt Financing?

Venture debt financing is a strategic part of a growing SaaS company’s financial arsenal. Practical and useful for young businesses as well as those with annual revenues well into the millions, the benefits of debt financing extend well beyond just being a source of funding for growth. They include flexibility and options — benefits that …Read More