Fintechs and the Stock-Based Loan Market
Too Long; Didn't ReadCompanies that use stock-based lending to finance their businesses generally borrow at higher costs than if they used traditional debt financing. Despite the aforementioned increased cost, there are numerous benefits to these types of loans that businesses should consider before proceeding with either method. Stock-based loans can be an attractive option for borrowers who are looking for quick access to cash and do not want to sell investments. The Good, the Bad, and the Ugly of this type of loan agreement are the risks involved before taking out a loan.