You are viewing a single comment's thread from:

RE: Dumb Money Knowledge – Debt or Equity

in #trading7 years ago

Great article. My favorite Shark on Shark Tank is Kevin O'Leary. He seems to be of the mind, that once your business is already somewhat off the ground, at that point, its better to take debt rather than give up equity. He'll offer loans quite frequently. The idea being is that his offer is more competitive because a profitable business should not want to give up equity bc they will have to share in the profits later on. If a company is not yet profitable, but he still likes it, he won't offer debt because it may not ever get paid back, plus he would want to share in the profits through equity because he is the guy taking the company to the next level of profitability.

Also I def agree on EOS. I believe in the creator Dan Larimeer big time.

Sort:  

Great point about when to use debt or equity. Or when to offer debt or equity in investing in a business. It seems to me, if offering debt you woud be looking for a passsive income stream. Nothing to do on your part. If buying equity, then you are investing your time in the business. You should get paid on whatever future earnings that the business has.

Coin Marketplace

STEEM 0.17
TRX 0.15
JST 0.029
BTC 60973.26
ETH 2366.47
USDT 1.00
SBD 2.58