3 ms·
Oh, I see. I have no idea. My intuition is that it's like a standard loan, as in he can do whatever he wants but if he doesn't pay it back then they'll come aft
by bmitc 4y ago
Oh, I see. I have no idea. My intuition is that it's like a standard loan, as in he can do whatever he wants but if he doesn't pay it back then they'll come after his other assets he supposedly put up as collateral. That's just me guessing. I have no idea how that works at that scale of financing.
- jedberg 4y agoWhen you owe the bank 1 million dollars, you have a problem. When you owe the bank 1 billion dollars, the bank has a problem.
- systemvoltage 4y agoDebt financing is different than buying shares in the company. There is no fiduciary responsbility in the strict sense of the meaning. But, there is an obligation to pay back the loan with interest. Crappy link but it tells you the basics: https://www.zeni.ai/blog/debt-financing-for-startups https://www.zeni.ai/blog/debt-financing-for-startups