Interest rate is pretty much irrelevant. If the startup fails, they're not going to repay. If the startup succeeds then the interest is dwarfed by the value of the lender's equity.
If the lender is worried about interest rates and credit worthiness, they probably should not be pursuing a startup. The idea of a loan is that it removes negotiations over a finite pie that probably is worth nothing over the long run.
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At what interest rate? Seems to me the average startup's credit worthiness is somewhere between Junk and Non-Existant.
Interest rate is pretty much irrelevant. If the startup fails, they're not going to repay. If the startup succeeds then the interest is dwarfed by the value of the lender's equity.
If the lender is worried about interest rates and credit worthiness, they probably should not be pursuing a startup. The idea of a loan is that it removes negotiations over a finite pie that probably is worth nothing over the long run.