How do I get debt financing and how does it work? I’m thinking along the lines of Silicon Valley Bank and others who debt finance startup ventures.
by Charles Swan at The Virtual CFO
You need to prepare a proposal, which will resemble a business plan, that will convince the lender that you will be able to repay principal and interest as scheduled. This is done through a history of earnings
Silicon Valley Bank, as well as other venture lenders, lend to companies that do not qualify for conventional bank credit, but base their decisions and pricing on their analysis of the company’s prospects, and most importantly, the caliber of the venture investors. They will also want warrants if they decide to participate.
Your CPA and attorney should be able to make recommendations and introductions.