Definition
A Sweat Loan is an agreement where repayment may involve providing services or labor in lieu of traditional financial repayment, often utilized in early-stage startups with limited cash resources.
Usage and Context
A sweat loan allows a startup to repay a loan with services or labor rather than money, often used in the early stages.
Frequently asked questions
What does syndication mean in investment? Syndication in investment means combining resources from multiple investors to finance a larger deal.

What is an example of sweat equity? An example of sweat equity is a co-founder receiving shares in a company instead of a salary in exchange for their work and contributions.

Is sweat equity a good idea? Sweat equity can be a good idea as it allows contributors to gain ownership without upfront capital, but it can lead to dilution and disputes if not managed properly.
Related Software
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Benefits
A sweat loan allows repayment through services or labor instead of money, often used by early-stage startups.
Conclusion
A sweat loan allows startups to repay loans with services or labor instead of money.
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