Posts tagged: capitalization
What a Business Line of Credit Is Actually For
A business line of credit is a revolving facility, not a loan. Most new business owners who get one either don't use it or use it wrong. What it's designed for and what it costs.
Getting Your First Business Loan From a Bank (Not the SBA)
SBA loans are frequently recommended to new businesses. What makes them worth recommending also makes them slow. What a conventional business loan from a community bank actually involves.
Getting a Business Credit Card When You Have No Revenue
The advice to separate business and personal finances from day one is correct. What it skips is how hard that actually is when your business has no credit history and no revenue.
The Company That Never Recovered from Its First Slow Quarter
A company with no reserve, no line of credit, and operations running close to the cash ceiling can survive almost anything except a slow quarter. The slow quarter comes.
Friends and Family Rounds: What You're Actually Asking Them to Sign
A friends and family round feels like borrowing money from people who trust you. It is also a financial and legal transaction that most participants don't fully understand at the time.
Revenue-Based Financing: What the Percentage Costs You
Revenue-based financing doesn't require equity dilution. It requires something else: a percentage of your revenue until a fixed multiple is repaid. What that looks like as an actual cost.
What Runway Means When You Are the Paycheck
Runway calculations assume founders are paying themselves from the raise. When founders are not paying themselves, the runway looks longer than it is. The hidden cost of working for equity.
Undercapitalization: What It Looks Like Eighteen Months In
Undercapitalization does not usually look like running out of money. It looks like a decision you cannot afford to make. How the problem compounds and what the signs are early.
How Much Money You Actually Need (The Honest Calculation)
The optimistic version of the startup capital calculation starts with fixed costs and adds a revenue ramp. The honest version includes what the optimistic version leaves out.