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But it isn't in your creditor's interest that you go bankrupt either.
by simonbyrne 9y ago
But it isn't in your creditor's interest that you go bankrupt either.
- emsy 9y agoThis. Being able to get debt should, in general, be a good indicator that your company might actually be valuable.
- saas_co_de 9y agoNot really. The easiest way to get a loan is to start a fast food franchise or build houses. Banks don't do innovation.
- valuearb 9y agoIt is if they lose faith in your ability to make a profit. Better to force you into bankruptcy and auction the IP and tangible assets than let you ride it down to zero.
- vm 9y agoBankruptcy can definitely be in the creditor's interest. It can take possession of the company's assets, and then sell them off to recover principal (in addition to many other outcomes - bankruptcy is complicated). Debt incentives do not align with equity.
- thecrazyone 9y agoI don't equity investments align in interest either - among Founders, angels, VCs, PEs and public shares. There's enough material to backup the struggle between any of these entities