In the quest for investment, African entrepreneurs face challenges in accessing funding, prompting the need to identify the right funding models. The distinction between debt and equity financing is crucial, with considerations of control, equity dilution, and repayment obligations. Various funding models, including senior debt finance, unitranche finance, second lien finance, and mezzanine finance, offer diverse advantages. Entrepreneurs should align their choices with capital needs, risk tolerance, and business goals, emphasizing thorough financial analysis and strategic decision-making with lending institutions' support.
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