[Swizec]

Something like that yes. Mind you some jurisdictions have laws around “reasonable salary” so always important to check these things with a professional first.

For a more fun take: Watch WeCrash and notice how the protagonist magics 100mil for personal use after raising the huge Softbank round … and what happens to that liquidity when an IPO doesn’t materialize.

[rexreed]

How and when does the loan get paid off then? How is this better than taking salary without the burden of debt repayment?

[Swizec]

Alas I’ve never been wealthy enough to see how this works in practice. At my level (can borrow about 4 months worth of living cost) you do have to pay it off eventually, you just get quite favorable interest rates in the meantime.