In case #1, it doesn't take a lot of time to raise money. Collateralizing a bank loan against future revenue is a fairly pretty straightforward process, and the only "pitch" you need is (possibly audited) documentation of your free cash flow.
a) Bank loan is not an investment, not even a convertible debt.
b) Raising Money takes longer time than one imagine at first, especially at start when every available second is used for the development. All of a sudden, in the middle of the code server development, you have to stop your hacking works and author a 15-18 slides deck for an investor, that alone can take about a week.
You know, working on the figures, facts, and backing up your thesis. Sending it over to get reviews, meeting, waiting for answer.
It takes time, and it takes the most expensive time of yours.
You are suddenly stop working for the startup and start working for the investor(s).
