When a startup meets debt it inevitably comes with its friend "Covenants."
"Financing is an art form. You have to be sure the company has the right covenant — to allow it the freedom to grow, but also to insure the integrity of the credit."
"Debt isn’t good or bad. For some companies, close to zero debt is too much leverage. For others much higher levels of debt can easily be absorbed. The right time for a company to finance its growth is not when it needs capital, but rather when the market is most receptive." MM
"The year 1974 taught me that leverage can decimate even the best company when its access to capital is cut off. It also taught me that most people have short memories. That’s why most financial people have five-year careers – one market cycle.” https://www.google.com/amp/s/25iq.com/2015/12/26/a-dozen-things-i-learned-from-michael-milken-about-finance/amp/ …
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