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Should You Fund Your Startup With Convertible Debt?

There are many ways for a nascent small business to acquire the money it needs to start operations and expand. By now, many owners realize that the traditional bank loan is the most difficult and least advantageous source of capital for many small businesses. They instead turn to venture capital firms or angel investors. When you finally find the right funding partner and shake hands on the amount of capital to invest, the difficult part begins. Should you take the money as debt to be repaid and preserve your equity? Or do you make them true partners by giving them an ownership stake in the company?

Mike Periu

Full Story: http://www.openforum.com/articles/should-you-fund-your-startup-with-convertible-debt

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