What is the best way to facilitate growth? Growth needs $. Big growth - bigger $$.

Two sides of the Balance sheet to pick from: Cash, Debt, Equity - (and the Hybrids)

Cash: Cash is king. Churn Cash? Then re-invest the cash to continue growth.

Debt: Debt is predictable and is perfect for buying stuff (PP&E). There are terms, conditions, warrants. All of this is negotiable.

Types of Debt:
• Sr. Secured – think Mortgage- The Sr. part means they have the primary lien position, secured against the asset you bought.
• Jr. Secured- think 2nd mortgage- you are subordinate in lien position to Sr.
• Mezzanine: A hybrid debt or equity structure that is subordinate to the Sr &Jr, yet above the common stock. Typically a short term instrument based on your cash flow
• Unitranche: Combines all of the above at a blended rate. May or may not have equity component.
• Convertible: Can be anyone of the above that defaults into equity based on terms.

Equity:
You raise capital through selling shares of your company.
Great for hyper-growth. There are terms, conditions, warrants, covenants, provisions, clawback and lots of new legalese you need to understand.

Which to use? All depends on strategy. Likely, you'll need all the above pending your goals.