I've been told explicitly by several people not to finance an early stage startup with debt. I second utnick's suggestion to try to find other ways to make ends meet, until you can land some angel investment (in the form of equity financing). Not only can debt ruin your life if the startup fails, but a lot of debt can look bad on your books if you reach the point of looking for outside investment.
I recently learned about Certified Capital Companies (CAPCOS), which are government backed organizations that look like banks, but their investment turns into equity like an Angel or VC investment. Apparently they are still very conservative in their investments though, and may not have very desirable terms. But at least this is better than taking on a lot of debt. I dont know much about them, but they might be worth looking into if they are available in your state.
Hrmm.. Very fair points, both on outside investors, and on CAPCOS. With outside investors, I know we'd get a better valuation if we could launch, and start bringing in revanue before we go out knocking on doors. Investing in a dream and a codebase is one thing, but seeing the numbers on paper has to help.
I recently learned about Certified Capital Companies (CAPCOS), which are government backed organizations that look like banks, but their investment turns into equity like an Angel or VC investment. Apparently they are still very conservative in their investments though, and may not have very desirable terms. But at least this is better than taking on a lot of debt. I dont know much about them, but they might be worth looking into if they are available in your state.