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“This is the first time we’ve ever disagreed,” I said to Gill, one of the investors in my company. I had just told him that I wanted to get a loan for my company, and Gill, much to my surprise, was against the idea.
“I know, Brett. I know,” Gill said. “My feeling is that Venture Capital is like jet fuel for a startup.
“A loan is like the exact opposite of jet fuel.
“Besides,” Gill said ominously, “Loans always come due at exactly the wrong time.”
Loans are great for extending your runway.
Two weeks prior to meeting with Gill, I was meeting with Tina, our awesome Controller, in our weekly Friday financial review meeting. In this meeting, Tina surprised me and said, “I think we should get a loan.”
“Really, what are you worried about? We have a year and a half of cash left in the bank,” I said.
“I know,” Tina replied. “However, we’re behind our (revenue) plan, and I think getting a loan will help us before we raise our next round (of funding).”
“Okay,” I said slowly. A loan was not something I was planning on doing, but I wanted to hear what Tina had to say.
