Debt-based Financing
Debt-based financing and loans play a crucial role in business growth by providing access to capital without giving up ownership. Entrepreneurs can use these funds to invest in equipment, inventory, or expansion while maintaining full control of their business. With responsible borrowing and timely repayment, debt financing can also help build a strong credit history for future financial opportunities.
Navigate this page to access presentations, templates, and resources designed to help entrepreneurs prepare to apply for loans.
Featured Resources
Supporting entrepreneurs at different stages requires different tools and approaches. Review our featured resources below to better support your entrepreneurs.
Loan Readiness Checklist
The Loan Readiness Checklist is a straightforward tool to help entrepreneurs evaluate their preparedness for applying for business financing. This checklist supports you in guiding clients through the key financial…
Debt-based Financing Training Deck
This presentation introduces debt-based financing as an option for small businesses – including the opportunities for small businesses to receive low-, no-interest, or forgivable loans / grants. In addition, we…
Debt-based Financing Summary Video
The Debt-Based Financing Summary Video provides a straightforward introduction to borrowing money to fund business growth. This video helps you explain loan types, repayment terms, and what lenders look for.
Debt-based Financing External Resources
Leverage these links to access supplemental trainings, templates & guides from trusted sources.
Summary Video
Special Financing Considerations for SEDI Businesses
Access to Credit
SEDI businesses may face systemic barriers to traditional lending, including lower credit scores, limited collateral, or lack of banking relationships. Advisors should explore alternative lenders, CDFIs, or government-backed programs specifically designed for underserved communities.
Loan Terms and Affordability
Ensure clients understand the full cost of borrowing, including interest rates, fees, and repayment schedules. Help them assess whether projected revenues can realistically support the debt without harming cash flow.
Financial Readiness and Education
Many SEDI businesses may be new to formal financial systems. Provide coaching on budgeting, recordkeeping, and credit building to improve financial literacy and long-term loan readiness.
Trust and Relationship Building
Recognize that historical mistrust of financial institutions may exist. Advisors should prioritize transparency, culturally competent communication, and relationship-building to foster trust.
Leveraging Technical Assistance
Tap into technical assistance programs that offer pre-loan support, such as business plan development or financial coaching, which are often essential to prepare SEDI entrepreneurs for successful applications.
Looking for more Debt Financing tools?
We've assembled a curated list of links to trusted resources to help entrepreneurs pursue debt-based financing.
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