That sounds like a pretty good deal—for the credit union. They get paid their fixed share no matter how poorly the firm performs (short of bankruptcy). The firm

That sounds like a pretty good deal—for the credit union. They get paid their fixed share no matter how poorly the firm performs (short of bankruptcy). The firm and its employees are taking almost all of the risk. Selling equity would allow the firm to raise capital while splitting the risk with the investor(s). It makes the investor a partner in the firm's success or failure.