Most startups should be using debt in their capital structure. Equity is great, but debt comes with a number of advantages including 1) it is often faster to secure. Certain loans can be acquired in less than a week. 2) It reduces the amount of equity investment needed, thereby reducing ownership dilution for founders and other equity investors, 3) it also allows founders and operators to retain more control over the direction of their business. Most lenders simply want their investment repaid - they don’t want to be involved in strategic decision making.
We know debt can be intimidating, but with the right parter, using leverage can be a great way to access flexible capital and amplify returns for your equity holders. Please reach out if you have any questions about how to use debt for your company.