May 29 2015 04:45 AM
For the company: The paper work is less cumbersome than the common alternative which is establishing various class of preferred stock and contractual stockholder rights.
There is the issue of control of the company which is eliminated since the company is only trying to secure a debt which is to be paid back and not ceding control of the company.
For the Investor: The advantage is the right to be repaid, with interest.
Also, he has the right to foreclose on your assets if the debt isn't repaid within the stipulated time