Overlap 101: Debt
In this first episode of our Overlap 101 video series, Founder & CEO Justin Stevens explains the concept of corporate debt: what it is, how to use it, and why it can be a highly effective means of scaling a company’s operations.
WATCH HERE:
In this episode, Justin talks about:
[1:15] The three different ways a company can fund its operations
[2:41] Debt in terms of owning a home
[4:40] The economics of selling your house for a gain
[7·13] The economics of selling your house for a loss
[9·10] Corporate debt in terms of owning a factory
[9:20] Small factory—fairly simple capital structure
[10:23] Large factory—complicated capital structure
[14.15] Nine different types of corporate debt, from project finance and revolving lines of credit to asset-backed securitization
[20.08] How a company finds the right capital structure that works for them
Thanks for watching! Please let us know in the comments if there’s an Overlap 101 topic you’d like to hear more about in the future.