> Selling equity in a startup is very different from taking on debt, with debt your committing the business to a strategy
wha? selling debt you are committing yourself to a financial obligation, selling equity you are committing yourself to a strategy in the hope that that strategy will be successful.. yes, it is not binding fiscally and so the strategy can be renegotiated without penalty, but that doesn't by proxy imply the converse that debt inherently requires a fixed strategy..
this is why you can get cash flow/line of credit loans based simply on historical accounting data, etc..
that said getting loans under false pretenses is also fraud. YMMV
wha? selling debt you are committing yourself to a financial obligation, selling equity you are committing yourself to a strategy in the hope that that strategy will be successful.. yes, it is not binding fiscally and so the strategy can be renegotiated without penalty, but that doesn't by proxy imply the converse that debt inherently requires a fixed strategy..
this is why you can get cash flow/line of credit loans based simply on historical accounting data, etc..
that said getting loans under false pretenses is also fraud. YMMV