Archive: 2015

When your business needs a new facility, you face the dilemma of whether to buy your own space or lease a suitable property. While leasing offers several nice benefits like smaller upfront costs and minimal site maintenance, there are at least five very compelling reasons that buying your own facility could make more sense for your company. Buying your own property: Saves You Money Over Time Buying a property will require more money at the outset. A down payment of between 25 percent and 30 […]

The Small Business Administration’s 8(a) Program is designed to help socially and economically disadvantaged small business owners break overcome those hardships. Securing a spot in the program can be a huge windfall for growing companies, but the process is not easy. Here are some tips on getting in and making the most of the 8(a) program: In order to be a prime candidate for the program, your company should already have done some prior business with government agencies. The 8(a) program is […]

The Small Business Administration has designed a program to help entrepreneurs that may have to overcome social or economic disadvantages in business by giving them a boost into government contracts. It is called the 8(a) Business Development Program and it can be a huge financial benefit to those who qualify. The 8(a) program is a nine year plan with two stages. The first four years are the developmental phase when a socially or economically disadvantaged company gets mentoring and education, […]

To many entrepreneurs their companies are their babies, their dreams, their passion. And yet there may be a time to let it go or at least relinquish some control of it. Such an instance might be when an early buyout offer is received. A buyout is when another company offers to purchase a majority hole (51 percent or more) of a business, either in stock shares or partnership rights. When the deal is struck, the new owner can continue the business unchanged, but he or she could also merge it with […]

Every stage of owning and growing a business requires a lot of funding. Traditional small business loans are not available or even appropriate for all these stages. Fortunately there are several other viable sources of financing, among which are venture capitalists (VCs). VCs are investors who provide promising companies with cash in exchange for an equity stake and the hope of greater profits in the future. There are venture capitalists seeking for opportunities in every market segment and many […]

Many companies need a helping hand when they are struggling to tide them over until business picks up. A bridge loan is a common means of business financing for just that purpose. Before diving into a bridge loan however, it is important to understand all it entails. First, a bridge loan – also known as a swing loan or gap financing – is a temporary business loan using collateral such as real estate or inventory. The collateral could also be receivables, fixed assets, or intellectual property. […]

While many small business owners decide to incorporate their companies in order to protect their personal assets from business liability, the financial benefits can extend far beyond that single goal. Turning your business into a corporation or Limited Liability Company (LLC) can provide everything from tax advantages to better financing options with small business lenders. Consider the following benefits: Avoiding Double Taxes Incorporating can help you avoid the trap of double taxation – […]

When the commercial lending market climate is dry, buyers and sellers of commercial real estate start looking for creative financing solutions. One possible alternative is called a “wraparound” mortgage. While not without its risks, a wraparound mortgage can create mutually beneficial sales when no mortgage credit is available. A wraparound mortgage is when a seller provides financing to the buyer directly. The seller holds onto the original mortgage. The buyer makes a down payment to the […]

Asset-based loans have traditionally been considered last-ditch financing options for business owners. Yet in today’s changing financial climate, there may be some circumstances when asset-based loans can provide great benefits. What is an Asset-Based Loan? An asset-based loan is business financing that is secured with the company’s assets. These can be collateral in the form of tangibles like machinery and equipment or inventory, but it can also include accounts receivable or securities. […]

An initial public offering (IPO) is a major step for any business. It can lead to growth and working capital, but it is costly and can bring unintended consequences. There are plenty of advantages and disadvantages to consider before taking your company public. Pros Becoming a publicly-traded company can generate more capital through the IPO as well as greater access to capital from the future creation of more shares. That capital can be used to acquire other businesses or be pumped back into […]