What is Debt Financing

Insights on venture debt.

Month: October 2018

The Risks of a Personal Guarantee Agreement

A final loan condition we wanted to cover is the use of personal guarantees in raising capital. A personal guarantee agreement isn’t something you’ll often find in the venture debt financing sphere, but you might be asked to sign one if you pursue other forms of financing. Specifically, bank loans and other lenders may require …Read More

Debt Covenants: Are They Right for Your SaaS Business?

There are many terms and financial mechanisms involved in venture debt financing, one of which is a debt covenant. This is one of the loan conditions you may be required to accept to receive venture debt financing. At first, this might give you pause — but a debt covenant is less of a risk to …Read More

Warrants: What They Are and Why They’re Risky

A warrant (also called an equity kicker) is a security that grants a lender the right to buy stock in a company for a fixed price until a preset expiration date. Warrants are typically provided as an incentive to investors in exchange for their investment; however, depending on the lender, they may also be a …Read More