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Warrants are the right to buy stock at a fixed price until it expires. An equity kicker is a special bonus part of a loan that gives someone who loans money to a company (as debt) an extra bonus right to purchase shares in the company. So the sentence, in plain English, would be: The terms of a venture debt loan are as follows: The loan is for three ...

So, is it highly improbable that an investor would throw their money into a product/company produced by a person with student loan debt? No Is it even a factor, usually? Probably not. Why would an investor invest in a product that's being controlled by a person who is in debt? Because, unless the debt is from an addiction or problematic ...

If I were in a business situation like that over a substantial amount of money, and really felt I owed nothing to the purported creditor and they had no leg to stand on, I'd call my business attorney. But if I didn't have the money for that, I would write a letter demanding evidence that I owed the money and the collection agency "owned" the debt and was ...

I'm no lawyer, but I don't think you should even bother doing paperwork right now. I'd focus on product and customers instead of nailing down specifics on this. Also, since you own 100% of the company right now, how will this $5,000 even convert into debt, since you already own 100%? You might not even need to do the paperwork... instead maybe just file ...

Brandon, I totally disagree with many of the responses posted here. I've started several companies and I took on personal debt every single time. But like you're thinking, I always kept the amount within a range that I thought I could pay back if my latest entrepreneurial dream fell through. Contrary to popular opinion, BANKS and CREDIT UNIONS do lend ...

No bank is going to give a loan to the corporation where they will only get repaid if it someday makes a profit. But, contrary to all the no-debt advice, isn't that the situation created by almost all SBA loans? The owners are always liable if the company can't repay the loan. It's also not easy to get equity investments for a pre-revenue company, as was ...

The most reliable valuation method is that which is agreed to by all parties. If you agree that the value of the IP and revenue is offset by the liabilites/obligation and debt -- and everyone agrees-- then it can be worth nothing! Is this a good deal? Let's assume that of the 96K/year revenue could be doubled next year (OMG) to 192K. Let say you are able ...

He agreed on my service charge and I worked for him If you have documentation of this, then (informally - I'm not a lawyer and this isn't legal advice!) you have a good chance of being able to pursue your non-payer. The main question is going to be how to balance the cost and difficulty of pursuing a claim long distance, and the amount of money you are ...