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debtdao.org
a portion of that monthly payment you’re making is actually embedded interest because the investors bought it at a discount. So there’s an effective interest component up to this. Pipe actually has thought of this and they have a really nice little report inside their marketplace that shows you the discount or component of interest. And your... See more
Scott Orn • Accounting for startup financing from Pipe
PRIMER ON NEGATIVE COVENANTS IN LOAN DOCS
Negative covenants are one of the most important sections of a loan doc, and the place you really want to look at to understand how the company is financially restricted through covenants
As always, DM with any questions
Rightfoot | Fully embeddable debt payment APIs
rightfoot.com
A debit is a piece of your future that someone else owes.
^ Sept 2020 Perceptive / $ZY "growth financing" was actually $100M credit facility
By YE20, $ZY was unable to comply w debt covenant, but got waiver
If $ZY defaults, Perceptive gets "SUBSTANTIALLY ALL assets, including IP"
So $ZY has an immediate interest in... See more
The average leveraged loan had a debt-to-Ebitda ratio of 6x at year-end 2021, and this calculation was often based on aggressive Ebitda adjustments, meaning true leverage was often greater.
Typically, firms only provide venture debt for companies that have balance sheet debt under 20 percent of operating expenses. Since future incomes must be used in order to pay down the debt, seeing venture debt on a balance sheet can be considered risky to prospective investors.10
Bradley Miles • #BreakIntoVC: How to Break Into Venture Capital And Think Like an Investor Whether You're a Student, Entrepreneur or Working Professional (Venture Capital Guidebook Book 1)
On January 1st, the US debt ceiling will be reinstated (based on the amount of debt outstanding on that date). Until legislation is passed to raise or suspend the debt ceiling (yet again), the US Treasury will have to tap cash on hand in the TGA to finance its spending obligations.