Chapter 6
Borrowing Money: Debt Funding Basics
IN THIS CHAPTER
Understanding what debt funding is and isn’t
Getting the lay of the land by learning about advantages and disadvantages
Knowing the types of debt funding options
Understanding interest rates and repayment terms
Managing debt responsibly
At first, you may think that borrowing money is a bad idea. After all, you say, that’s contrary to the all-American bootstrapping system that makes small business great!
But hold up there, champ. Debt funding is a common way for business owners to fuel their cars to get to their dream destinations much as debt financing helps people buy cars in the real world. There are several compelling reasons to consider borrowing money:
- Debt funding gets you access to capital without requiring you to sell ownership interests in the company to one or more people.
- You have full control over your business while still getting the money you need. (That’s a good definition of win-win.)
- There are plenty ...
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