[bmitc]

Oh, I see. I have no idea. My intuition is that it's like a standard loan, as in he can do whatever he wants but if he doesn't pay it back then they'll come after his other assets he supposedly put up as collateral. That's just me guessing. I have no idea how that works at that scale of financing.

[jedberg]

When you owe the bank 1 million dollars, you have a problem. When you owe the bank 1 billion dollars, the bank has a problem.

[erehweb]

The bank has much less of a problem if you have 20 billion dollars, though.

[lazide]

Not necessarily - he can our lawyer them until they die of old age.

[systemvoltage]

Debt financing is different than buying shares in the company. There is no fiduciary responsbility in the strict sense of the meaning. But, there is an obligation to pay back the loan with interest.

Crappy link but it tells you the basics: https://www.zeni.ai/blog/debt-financing-for-startups