Heyo! Welcome to the $100 M. B. A better business Begins With You. That's why we deliver business lessons for the real world. I'm your host, your coach, your teacher Omar at home. I'm also

the co-founder of Webinar Ninja, an independent software company I started back in 2014.

In today's episode is Q&A Wednesday.

On Q&A Wednesdays we answer a question from one of you, one of our listeners.

You got a question you want to ask, go ahead and email me over at omar at 100

MBA.net. Today's question is from Charlie and Charlie asks,

hey omar I'm looking to scale my business and I'm looking for some financing

options. Look at seeking investment from, but I'm curious about debt financing.

Is this a good option for a software company that's growing slow but steady?

Thanks for your help, Charlie.

Solid question, Charlie. Debt financing is a relatively new form of finance that has come out.

There's some pros and there's some cons that we're going to discuss in today's episode.

But in a nutshell, it's quite sophisticated loan so to speak it's not like a

traditional loan from the bank it's sort of like a bank loan mixed with getting

investment from an investor I'll explain in today episode, but the reason why a lot of people

are attracted to debt financing is because there's no dilution. They don't take a stake in your company.

They'll take a percentage or any equity. So for many founders this is a great first option for

raising capital. We'll look into the nitty gritty and what to look out for in

today's lesson so let's get into it. Let's get down to business.

Debt financing is very popular in the tech space. In fact, Stripe, the payment processor that's very popular amongst tech companies

has dipped his toe into debt financing as well,

offering this service within its service. Right now I think it's only available in the

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