Archive: October 2015

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 […]

Doing a lot of business overseas can create the need for special financing. Exporting goods can be lucrative but also risky if the importers are slow on the payment terms. The Export-Import Bank of the United States (Ex-Im Bank) was established to help U.S. companies find success with lenders for their exports by reducing the financial risks of international trade. With the aid of third party financers like the Ex-Im Bank lenders do not have to worry as much about the risks of war interrupting their […]

Bringing your company’s initial public offering (IPO) to the market is an exciting day. It typically means your business is a genuine success and the masses are interested in buying into it. How do you know if you are ready to take your company public? The very first step is to see if you meet the requirements set by each market exchange. The two largest stock exchanges are the New York Stock Exchange (NYSE) and the NASDAQ Global Select Market. Each of these is regulated by the Securities and […]

In the process of growing a successful company, finding the next round of funding is always on the business owner’s mind. Initial Public Offerings (IPOs) can be an exciting avenue to cash but they can also be complicated and expensive. In some cases a private placement round may be more effective. What is Private Placement? A private placement is a securities offering not to the public, but to a select group of private investors, typically institutional investors like insurance companies, banks, […]

Angel investors and venture capitalists have been a major source of funding for small businesses in the past, but according to a recent survey by Massolution, crowdfunding may soon overtake both groups as the financing vehicle of choice. The survey found that crowdfunding is on track to provide more funding to small businesses by 2016 than VCs. The crowdfunding industry has grown from just $880 million in investments in 2010 to $16 billion in 2014 and a projected $34 billion for 2015. By contrast, […]