Venture Debt vs. Equity
Loans are "non-dilutive" capital. Unlike VC funding, you don't give up ownership, but you do take on repayment risk. If your startup fails to meet revenue targets, debt can be a heavy anchor.
Note for 2026: Interest rates have stabilized, but lenders are looking for stronger "Debt-Service Coverage Ratios" (DSCR). Use this tool to ensure your monthly cash flow can comfortably cover these payments before signing a term sheet.