I will be funding my first web startup with debt. My reasoning is, it would take 12-18 months to save the capital required (I'm not a coder) and I would rather launch early and update often during that time.
How have others funded this phase and what was your experience?
Debt only makes sense to if you can afford it if the startup fails. Think of it like vacationing on a credit card or spending cash to Vegas. Only spend what you can afford to repay and only gamble that which you're absolutely willing and able to lose.
Be aware of debt especially as a non-coder. Assuming you don't have project management experience as non-coder it'll be really hard for you to estimate certain stuff, if you go in there with debt you'll get burned quite quickly.
Save some money, hire a guy, get the first prototype up and running then start knocking doors of angels, VCs etc. whatever you are after. Or just launch it as alpha if you have that kind of product.
I was in similar situation and I chose to not go into debt because from my previous startup experience I know it'd bring massive amount of extra stress (especially if you are married and have a certain life style ). A startup is really hard as it's you don't really need extra stress.
Just my 0.2$
Don't use debt, since you'll have to repay it eventually (with interest).
You forgot one key currency: sweat. If you are not a coder, find a co-founder who is, and will work for free^H^H^Hstock.
Avoid Debt at all costs. Just remember one thing, the vast majority of startups fail, and if it does you will still have the debt. And at all costs don't put the debt on your house! If you take out a loan on your house and the biz fails you loose your house.