Archive: 2015

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, […]

Many business owners take on commercial mortgage loans in order to buy their own work facilities and real estate. In some cases, these commercial mortgages will have a balloon payment attached to them – a lump sum payment to repay the balance of the loan after three, five or ten years. Coming up with a chunk of cash that large is virtually impossible for most businesses, but there are several options to make these loans work. Balloon payments are a way for lenders to reduce their risk and recoup […]

Once your business has gotten through its seed funding round and the gears of success are start to turn, your next step is likely to get another infusion of capital through investment. This is the arena of venture capitalists. They look for thriving small companies that can bring them large returns on their investment. If you have made it to the stage where you can attract the attention of VCs, your business is in a good spot. Once you are ready to take on some of those investors, the key is to create […]

Finding enough working capital and other funding for a startup small business is often the toughest part of creating a viable company. And traditional bank loans are generally unavailable for firms with no financial history. Credit cards are available to almost everyone though and can provide easy capital to entrepreneurs. Is this a smart option for new businesses? Whether or not it is smart, it is a popular method of financing. In the National Small Business Association’s 2014 year-end report, […]

Commercial mortgages and residential home loans are both loans taken out on properties and they both use the property itself as collateral. What makes them different from each other? As a business owner, what do you need to know about making a commercial mortgage agreement? Borrowers While residential mortgages are usually between banks and individual buyers, a commercial mortgage is made to a company or business. An individual could sign on to a commercial loan but since the property is zoned […]

While the idea of one giant small business loan to cover all your growth needs sounds ideal, it is usually better to approach a loan thinking only about the next step in your company’s future, not the next five. Planning to borrow only what you need for the next stage will make your application much more viable with banks. Banks and other lenders, especially those making SBA (Small Business Administration) loans, want to know how you plan to use the borrowed funds. That means a specific, measurable […]

In the years following the Great Recession, small business owners found themselves faced with limited access to capital as spooked lenders avoided risk as much as possible. And while small business lending has picked up a little in recent months, the dearth of funding has sent entrepreneurs away from their traditional bank in search of better pickings. A recent Ernst and Young report found that nearly one in five businesses changed its primary bank within the past year, a sign that business owners […]