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supply. Banks theoretically would provide debt to a company with 1mm in revenue, as long as they show the ability to cover the debt payments. But those companie
by danvoell 13y ago
supply. Banks theoretically would provide debt to a company with 1mm in revenue, as long as they show the ability to cover the debt payments. But those companies typically can raise more money based on equity than debt.
- charlesbonello 13y agoSo the concern is that a debt financing would be smaller than a potential equity financing by some order of magnitude, as it's constrained by trailing cash flow rather than future opportunities?