At a Glance: After signing a debt deal, founders must understand how the deal will play out. The terms that affect the deal after it takes effect are structural and operational, legal obligations, and future growth clauses. Understanding the Waterfall, Bankruptcy Remote Entity, Servicer, reporting r…
At a Glance: Raising a debt facility is challenging for fintech founders, especially when they don’t understand the actual cost of capital associated with it. Upfront costs associated with a debt deal can be expensive and surprising for first-time borrowers. These include an initial committed …
At a Glance: Debt financing and equity financing are two ways for startups to raise capital. Debt financing involves borrowing money from a lender and repaying it with interest, while equity financing involves selling ownership shares to investors in exchange for capital. The advantages of debt fina…
At a Glance: Debt financing is vital for startups to grow and scale their business, especially for fintech startups to generate revenue through offering financial products. In the early stages, startups have limited and expensive access to debt financing options. Bank loans are the cheapest but have…
At a Glance: Debt term sheets outline the terms and conditions of a proposed loan agreement between a startup and a lender. While not legally binding, they set the stage for negotiations and help both parties understand each other’s expectations. Key terms in a debt term sheet include the loan…
At a Glance: Fintech startups commonly offer lending products and need debt capital to expand their credit business. Debt facilities are financial arrangements between lenders and borrowers, with a legally binding contract outlining the loan amount, interest rates, repayment schedules, and any restr…
At a Glance: Debt and equity are two common options for startup financing, each with their own benefits and drawbacks. Debt capital must be repaid with interest over a set period of time, while equity involves selling a portion of ownership to investors. Startups should consider the specific circums…