How clean are the terms when the founder doesn‘t have a shiny background (I will not promote)

Curious what happens to the terms when you're not the kind of founder YC picks. Plenty of people still raise without that resume, just not from the top tier funds. Does the paperwork stay clean for them? I've read that in some countries it's normal for an investor to put in money and require the founder to buy the shares back in 2 or 3 years, with interest. Basically a loan wearing equity clothes. Is that a thing where you are? What country, and how common is it?