Debt or equity: offer comparison
Compare the cash demands and ownership terms in the proposals actually available to you.
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Compare actual terms
Label each proposal and its type: borrowing, equity or a combination. Enter “unknown” where the written terms do not answer a question.
| Question | Offer A | Offer B |
|---|---|---|
| Provider and financing type | ||
| Net proceeds available; date received | ||
| Payment dates, amounts and maturity | ||
| Fixed / variable rate; fees; early payoff | ||
| Collateral and personal guarantees | ||
| Reporting or operating restrictions | ||
| Ownership percentage. Voting / consent rights | ||
| Preferences, conversion and future dilution | ||
| What remains unclear in the documents? |
Put the cash on a calendar
Start from the business’s own cash forecast. Record spending and collection dates before adding the proposed financing. A sales invoice is not the same as cash received.
| Date or period | Opening cash | Cash received | Operating costs + financing outflows | Closing cash |
|---|---|---|---|---|
Closing cash = opening cash + cash received − operating costs − financing outflows. Ownership percentages and cash payments measure different obligations. The table does not decide which proposal is best.
Source and scope. Based on the PRBE debt-versus-equity article, SBA investment-capital guidance and the SEC capital-formation glossary. Have the relevant advisers interpret guarantees, governance rights and tax effects.
Read the full article. This worksheet is educational. It is not an application, financing offer or personalized recommendation. Actual documents and applicable requirements govern.