The Insider's Guide To Finance

The Great Debate: Debt VS Equity w. Tom Klausen and Scott Sinclair

09.27.2023 - By Cory ClevelandPlay

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Choose your side – debt or equity financing and get ready for battle! Aspiring entrepreneurs and business owners looking to scale operations, this episode is for you.

On this special episode of the Insider’s Guide to Finance, we dive deep into the heart of one of the most contentious topics in the business world.

Tom Klausen, President of True Viking Finance, and Scott Sinclair, President of Sinclair Range are back on the show to discuss the nuances of debt and equity.

Debt and equity are two common methods of financing a business. Each option has advantages and disadvantages, and the choice between them depends on various factors.

Tom and Scott debate the value of equity, the risk associated with debt, and the reasons most businesses fail. We discuss the evaluation game, and using debt to grow an insolvent business.

The episode unpacks leveraging debt and equity together, why equity is a last resort for pre-revenue businesses and the cost of capital. You'll also learn about issues about equity and much more.

We hope you learn something valuable from this debate – from both sides! Enjoy the show. 

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Please note that the information contained in this interview is not financial advice but for entertainment purposes. I am not a financial advisor and make no warranties or representations concerning the accuracy or suitability of the information contained in this interview. I recommend that any and all investment decisions be made with the advice of accredited investment advisors.

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