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Vaibhav Babruwan Shingde
Student • 8m
why indian Startups are opting for Debt financing? 1. Preserving equity: Debt financing allows startups to raise capital without diluting their equity and ownership. This is important for founders who want to maintain control of their company. 2. Tax benefits: Interest payments on debt are tax-deductible, making debt financing more cost-effective compared to equity financing. This improves the startup's bottom line. 3. Flexibility: Venture debt offers more flexible repayment terms and structures compared to traditional bank loans, allowing startups to customize the financing to their needs. 4. Access to additional capital: Debt financing can provide startups with working capital lines, credit facilities, and other forms of supplementary funding to support growth and expansion. 5. Equity funding challenges: With the recent slowdown in venture capital funding,startups are turning to debt as an alternative when equity is scarce. What do you think 🤔❓
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