Debt financing can be a first step toward moving your company to the next level. Debt consists of bonds or equity instruments sold to a small group of private investors. Debt financing is the best way for proven emerging companies to grow without risking the underlying technology, process or service while keeping the bulk of company ownership in your hands.
The road to debt financing starts with your customer relationships; your customers are your best barometers of future success, it is the demand of those customers which will help you secure the interest of the private investors. DC Venture Services is expert at helping you maximize your customer relationships along with your process, service or technology to gain the financing required.
Advantages of Debt Financing:
- The company ownership stays in your hands
- Liability to the private investors ends when the debt is paid off
- Interest on the debt may be tax deductible ¹
- Debt repayment becomes a fixed budget line item
Disadvantages of Debt Financing:
- Money must be paid back within a given amount of time
¹ Clients should consult a CPA or tax professional for thorough tax advice.