Professional Documents
Culture Documents
Chapter 7: Debt Financing: Scott Morrissette
Chapter 7: Debt Financing: Scott Morrissette
SCOTT MORRISSETTE
Intro
Senior
Subordinated
Short term
Long term
Please see page 162
Senior vs. Subordinated Debt
Examples?
Short Term Debt
Examples?
Strengths and Weaknesses of Debt Financing
Pros
Entrepreneur retains complete ownership
Tax benefits
Cont
Cons
Personal guarantees may be required
Personal Savings
Family and Friends
Angel Investors rates typically higher than banks
Foundations
Government
Capital Access Programs
SBA
Community Banks
Community Development Financial Institutions
P 2 P Lending
Creative Ways to Structure Long-Term Debt