End Small Business Loan Frustration: Finance Your Dream Without A Bank

If you are like many people with an idea for a profitable business, you hit a brick wall when you try to get a small business loan from a bank. Perhaps you don't have a great credit score, or you haven't been able to establish any credit record at all. Maybe you don't have a lot of education or a business track record. You may not even have a bank account, much less a personal relationship with a banker.

It is a painful experience to be ignored or rejected, especially when you know you have a good idea and the motivation to make it work. Fortunately there is an alternative to bank lending that has emerged over the past decade in the United States: Microfinancing. Microfinance Institutions (also known as MFI's) provide small loans and other helpful services to businesses and individuals who find it difficult or impossible to get financing through traditional means. Originally limited to developing countries, there are now a number of these lenders in the United States and Mexico--and the trend is growing.

MFI's differ from banks in that they exist to help people who can't get funding through the usual financial institutions. They know that not being able to meet a bank's requirements doesn't mean you can't be successful. In addition to loans they often provide business counseling, advice, and ongoing support to help establish and grow your business. Each MFI operates a little differently and has its own policies regarding eligibility and the timing and method of repaying your loans. While they typically don't insist that you have a bank account, credit record, collateral or someone to guarantee your loan, they may require that you join a small group to receive training and counseling. Loans must be repaid according to agreed terms and schedules. Once your initial loan has been repaid, you may be able to get additional loans to grow your business. Loan amounts differ among MFI's but may range anywhere from $500 to as much as $100,000.

Some of the better known Microfinance Institutions in the United States include Grameen America and ACCION U.S.A., both of which operate nationally. There are also regional organizations such as The Opportunity Fund for those in California, and CASH (the Community Alliance for Self Help) in Seattle.

Another exciting development is the creation of non-profit groups formed to allow individuals to make donations which are pooled together to increase the funding available for micro-lending. One such organization is KIVA in San Francisco. Donors can search through descriptions of actual borrowers and businesses all over the world (including the U.S.) and make loans of as little as $25 to a specific individual. As the loan is repaid, the donor receives credits which can then be reinvested, donated, or cashed out.

Whether you are seeking a small business loan or you would like to support borrowers, there are organizations ready to make your transaction a painless -- and even uplifting -- experience.

Learn more now at http://www.gofreegovernmentmoney.com/

N. S. Jenks, Partner.

We provide fast, free, clear and factual information about public and private grants, scholarships, and alternate funding sources.

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How To Obtain A Credit Line For Business Endeavors

Line of credit is an arrangement wherein a financial institution agrees to lend cash to a customer up to a specified limit. Generally arranged before the funds would be required, this option will provide a flexible solution for the customer which gives the ability to meet short-term cash whenever needed. This can also be called a bank line, revolver, credit line, open-end credit, revolving credit agreement.


With the interest expense charged on any drawn portion of the credit line, most borrowers incur expenses related to legal and document fees, some commitment fees paid to the lender during closing, and fees paid throughout the time of the facility on the average unused portion, often referred to as an unused fee. However, a fraction of the interest expense on the line will be the unused fee.

Moreover, a business line of credit, is a common type of financing that is being offered by most business and consumer banks. It is a business capital that one can access any time but up to a certain amount contracted by the borrower and the lender to handle any expense. The borrower can repay and reuse this as needed also.

On the other hand, a small business credit card provides business owners with convenient access to a set credit limit of a revolving line of credit, for them to make purchases and withdraw their cash. Similar to a consumer credit card, it carries an interest charge if the balance won't be paid in full for each billing cycle. Business owners may try to get a credit card through their bank or they can compare card terms and features to other financing institutions.

Small business credit cards are marketed as a good alternative to a traditional line, though they also have their differences.

The most obvious difference is that a credit card provides borrowers with a revolving credit line, and on the other hand, a line of credit is fixed. Meaning, one can continue to borrow or charge up to his credit limit as he uses a credit card to repay the monthly bill. Unlike a fixed credit line, applying for a new loan is necessary once he has used and repaid his previous loan.

With the lending guidelines being tightened down by the banks, business owners need access to working capital to grow their business. An option like a business line of credit can help business owners along the way.

To find out more you can contact Business Credit Ally by going to http://businesscreditally.com/business-line-of-credit/ or contacting them directly at 855 249 2050.

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Increasing Working Capital

* Put All Assets To Good Use

Take time out to sort through all of your inventory and review services. This might mean taking a trip your company's storage room and rummaging through items. Find out how you can use items that are simply collecting dust, in order to increase profit.


Do you have employees with nothing to do? Make a list of long term goals for your business (i.e. open a new store, start delivering to customers, etc.). Then create short term goals that must be completed in order to reach each long term goal (i.e. research communities in need of such services, purchase a company car, etc.). Break these short term goals into weekly/daily tasks and make sure that you and your employees are aware of what needs to be done, and always taking action.

* Get Rid Of Everything You Don't Need
After you've reviewed all inventory, including products, services, company vehicles, etc., and put it to good use, review what is left over and eliminate it. You can make money by selling unused items and eliminating unwanted services. Unfortunately, the same goes for employees. If you find that you have more employees than necessary to complete work, it may be wiser to outsource what is necessary to another company

* Do Not Put Off Debts
Any invoices that are more than 60 days old should be taken care of. By 30 days, have staff begin to check and work on getting the money owed to you into the account.

Review all of the debts that you owe and set a schedule of when you pay each one. Usually, the longer it takes to pay off a debt, the more interest it collects. Paying debts ASAP can save you a large sum of money in the long run, and practicing speedy and timely repayment may help prevent procrastination in other areas of business. Having an understanding of all debts and paying them on time will keep your business more organized and keep you in control and aware of your finances.

* Find An Advisor You Can Trust
A financial professional such as an accountant, attorney or a financial advisor, can help you make financial decisions when you are overwhelmed. But it is important that you trust this person and his/her judgment. Before choosing a financial advisor, look into their client history and find out if they have had success with others. Ask other clients how they feel about the financial advisor's services and ask whether or not they recommend his/her services. But don't depend on your financial advisor for everything. Make sure you can still capable of making your own financial decisions when necessary.

Gaston C. writes articles about Working Capital and Small Business Loans for Merchant Resources International.

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Small Business Owners' Guide to Avoiding Credit Card Fraud

Accepting all forms of payments, including credit cards, is a crucial component in the quest to running a successful business. It gives business owners an opportunity to sell more products and services to a wider range of customers. Accepting credit cards can allow you to expand your company to include online sales and make you eligible to receive a merchant cash advance, which can be essential in promoting the growth of your business.


Though the benefits are numerous, accepting credit cards can also turn merchants into potential victims of credit card fraud, a type of fraud that occurs all too often in the United States.

As a merchant, it is important to be on the lookout for consumer credit card fraud which is committed by the use of fraudulent credit cards or by the purchase of products and/or services using a valid credit card that does not belong to the consumer (formally known as identity theft). But it is also important to keep an eye on employees, ensuring that they do not commit credit card fraud using a customer's credit card.

For consumers, there are various laws and guarantees to remedy the situation if credit card fraud does occur. Unfortunately, merchants are not provided with that same protection. Therefore, as a merchant, preventing credit card fraud altogether is vital.

So how does one reap the benefits of accepting credit cards without encountering the problems that may arise as a result? There is no way to completely safeguard your business against credit card fraud, but there are certain precautions that you should take as a merchant to promote non-fraudulent transactions and secure the stability of your business by reducing its chances of becoming a credit card fraud victim.

If a customer would like a refund, do not allow the refund as a credit to another account. Credit card refunds must only be granted to the same card that was used to make the initial purchase. Also, only allow refunds if the customer has the receipt for the product they wish to return.

Frequently changing the password to your credit card system may help as well. You may also purchase credit card fraud insurance for your business. If your business is insured, and fraud occurs, the insurance company will go after the parties responsible for the fraud.

Although it can be difficult if your business processes multiple transactions per day, it may be helpful to print a daily transcript of all credit card transactions.

As a restaurant owner, it is particularly easier for an employee to commit identity theft due to the amount of time that the employee spends with the customer's credit card out of the customer's sight. In this case, you may want to consider purchasing a portable credit card terminal. A waiter/waitress can bring this portable terminal to the customer's table, allowing the customer to swipe their own card, so the card never has to leave the customer's hand.

If you can not purchase a portable credit card terminal, make sure that your restaurant's credit system does not print credit card numbers and expiration dates on receipts. This way, employees can not copy these numbers while away from the customer. If your system does not mask these numbers, contact your POS system provider and inquire about credit card masking.

Gaston C. writes articles about Credit Card Advance and Small Business Loans for Merchant Resources International.

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Top Five Uses of the Merchant Cash Advance

As most small business owners may already know, there are no restrictions on how borrowers can use merchant cash advances. This is one of the many reasons that merchants choose this method of business funding. Still, some business owners may be searching for the best ways to put their advances to use.

The list below, of the top five (in no particular order) uses of the merchant cash advance, may be of assistance.

Renovate
There are so many ways to renovate and with a merchant cash advance in your hands, the possibilities are endless. You can use your funds to completely redecorate your business for a fresh new look. You can even use your merchant cash advance to give your business a "green" makeover. Maybe all you need is a fresh paint job to attract more customers into your business. Renovating is a great way to change things up a little or a lot.

Expand
Expanding a business can open a window of opportunities for a small business owner. It makes it possible for merchants to reach out to many more customers and serve extended areas. You can use an advance to expand and open another location, or you can choose to increase the service and/or products that your business provides.

Maintain
Many, if not all businesses go through rough patches, where additional funds are needed in order to keep the business afloat. That's why lots of merchants choose to use business cash advances to increase their working capital. With the increase in cash flow, they are able to pay for daily operating expenses and hold their businesses over until sales pick up again.

Advertise
Advertising is a very important part of running a business. It makes people aware of your business, informs them about why your business exists and lets them know why they should choose you over the competition.

Equipment
Over the course of time, equipment endures wear and tear and needs to be replaced or repaired. Merchant cash advance funds can pay for these repairs and/or replacements.

Get a free online quote [http://www.businesscashadvanceloan.com] today for your merchant cash advance.

Gaston C. writes articles about the Merchant Cash Advance [http://www.businesscashadvanceloan.com] for Merchant Resources International.

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Money for Starting a Business - Family and Friends Equity Stake

The vast majority of new businesses are self-funded, but the second most common financing method is through friends and family. Typically, those closest to you are the most likely to believe in you and your startup idea, they know your capabilities, and they want to see you succeed. However, money issues have a tendency to cause rifts in even the closest relationships, so it is critical that you plan ahead and handle all friends and family deals as professionally as possible. There are basically two options for securing friends and family financing - loans or equity stakes. Loans are basic - your friends or family front the money for your startup and you (the business) pays them back over time at a reasonable interest rate. Equity stakes provide the investor with a permanent piece of the company. They do not necessarily get back their original investment within a set time period, but they are entitled to a set share of the profits through the life of the business.

Most family & friends equity stake investments stem from a mutual admiration - they will risk their the money for startup because they are confident that you will succeed, you are willing to give up a portion of profits because you are happy to share with these particular folks. However, without a detailed plan in place, these relationships can devolve very quickly into anger and resentment and can be devastating to both your personal and professional success.

The trick to handling equity stake investments from those close to you is to clearly define what it means for each party. The investor must understand that they are putting their cash at risk. If the business fails, repayment is not an option (if they want a guaranteed repayment, it is a loan, not an equity stake). The amount of return they receive will depend on the agreed upon portion of ownership and the overall profitability of the company.

Think through exactly how much ownership you are willing to trade for the capital your family & friends will provide. In most cases, you will want to at least keep a 51% stake so you have ultimate control of the venture. But giving away nearly half the profits before you even start is not always the best idea, either. Do not let desperation to secure the cash push you into an unfair situation - if it is your idea, your work, and your time that are going to make the business successful, the value of the initial investment may be far less than it seems when you just really, really need the cash.

It is essential to work through all of the details with your equity investor before the deal is made. Will they have any decision-making power? When will they receive distributions for their share of the profits? How will those distributions be calculated? What if the business fails? What if it succeeds beyond your wildest expectations? Talk through every possibility and make it clear that business is business - investment in your startup should not be an emotional issue.

Money and relationships can be a difficult mix. The excitement of going out on your own should not cause personal problems with those closest to you. All the potential resentments and falling out can be avoided, however, by simply putting in the time and effort to handle the equity stake agreement as professionally as possible. Dealt with correctly from the start, creating financial partnerships with friends and family can be a win-win situation for everyone involved.

-K. MacKillop, a serial entrepreneur, is founder of LaunchX and authors a small business startup blog. The LaunchX System is designed to help entrepreneurs start a business based on their own idea. It includes step-by-step business startup instructions, key software, business tools, and more -- a complete business kit. Visit LaunchX.com to learn more about this revolutionary way to become an entrepreneur.

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Raising Money to Start a Business - Pros and Cons

 

There is a common assumption that you have to raise money from outside sources to start a viable business. In fact, the vast majority of small businesses are launched solely on the owner's dime and time. Some businesses seem to simply require outside investment, particularly if they call for expensive equipment, a substantial inventory, significant labor, or the like. However, most business ideas can be modified into smaller startups without high capital needs and built up to the ultimate company over time.

There are advantages and disadvantages to raising outside capital for a startup, and the decision whether to launch a full business idea or modify it to fit your own budget might come down to some of these factors.

Advantages of Raising External Funding

Money
Obviously, the number on advantage of raising capital is that you have money to spend. All of your initial ideas can be implemented and, if your plan is well-researched, you will have no problem staying afloat during the early stages of operations.

Value-Adding Investors
Some investors include their own expertise in the investment deal. In these cases, they are essentially paying you to be your mentor.

Sharing Responsibility and Risk
Bringing on partners redistributes the risk, and potentially the responsibilities, from entirely on your shoulders to the agreed upon proportions among you and the investors.

Presumption of Competence
Customers, vendors, and other investors may perceive your business idea as more viable simply because you have already secured a significant investment.

More Aggressive Projections
Knowing that you are starting with a sufficient bankroll to fulfill all of your best-case plans can be the motivation you need to swing for the fences and shoot for an out-of-the-park homerun.

Disadvantages of raising external funding:

Loss of Control
Once you split your equity with an investor, you have no capacity to fire them outright. Depending on the deal you make, every decision may require discussion with the other guy. And, the more you accept as investment, the more power they are likely to want and wield.

Limited Exit Strategies
In the same vein as above, once you partner with an investor, it is no longer up to you when and how you get out of the business. You can't always just pass it on to your kids, or sell it to an interested entrepreneur, or even just close the doors.

Altered Focus
With plenty of cash in the bank pre-launch, your focus is more likely to be on spending money than making money...perhaps not the best culture for a burgeoning venture.

Overconfidence
Confidence in your idea and abilities is critical, unjustified overconfidence is just plain dangerous. Taking in an early influx of cash such that there is no struggle associated with your startup can develop a culture of squander and waste...a difficult attitude to overcome once the cash runs out.

Whether or not to seek out external funding, and how much to ask for, is a decision only the entrepreneur can make. Be sure to consider the long-term outcome of bringing on partners or taking out big loans. If you are comfortable with the downsides of external financing, you can get your idea to market that much faster. If not, it may take more time to get off the ground, but you will be in the pilot's seat for the duration. Whatever you do, stay focused on the ultimate goal and do not let cash issues detract from what you are trying to do.

-K. MacKillop, a serial entrepreneur, is founder of LaunchX and authors a small business startup blog. The LaunchX System is designed to help entrepreneurs [start a business] based on their own idea. It includes step-by-step business startup instructions, key software, business tools, and more -- a complete business kit. Visit LaunchX.com to learn more about this revolutionary way to become an entrepreneur.

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Money to Start a Business - Angel Investors

One of the biggest stumbling blocks for starting a business is finding the money to finance the launch. If you do not have the cash to self-fund, do not have the credit score to secure a bank loan, and do not want to give up a significant portion of ownership to standard investors, angel investing might be the answer.


Angel investors are typically high net worth individuals who invest in entrepreneurial companies at the earliest stages. These investors are more willing to invest during the development stages than venture capitalists, and  are usually willing to take only a 5% to 20% stake in the venture - far less than the typical 51% plus demanded by VCs. Angels investors are looking for a good return on their money, but don't necessarily expect to turn $50k into millions overnight.

Most experienced angel investors have specific interests as far as the types of businesses they are willing to invest with. Many are partial to hi-tech startups, and healthcare innovations are also popular. But there are angel investors for just about any field, any product, as long as the idea and the entrepreneur have a shot at success.

If your startup idea requires less than 10k to launch, you don't need an angel, you just need to find a way to fund it yourself. If you need hundreds of thousands or more to launch, you will eventually need to find a venture capitalist and give up the bulk of ownership, but an angel investor can help you finance the planning and early stages of the venture. If you are starting a business with the intention of just making a living, you need a loan, not an angel investor. But if you have a great idea with significant profit potential, are willing to risk your own assets but need an extra influx of cash to get going, angel investors might well be the way to go.

Finding potential angel investors is part hard work, part luck. There are some formal matchmaking resources, like the AngelList at VentureHacks.com, but most angel-entrepreneur connections are made through basic (but aggressive) networking. You may have a family member, friend, or colleague with cash they would be willing to invest. As you build your startup's contact database, you will likely meet several potential angel investors along the way. The only way to gauge the interest of others is to talk up your business idea.

Your best bet is to step up your networking and talk to everyone you meet about your startup. Pay attention to those who show a particular interest and follow up with them. Develop a formal offer before you talk about a deal - know how much you need, what you need it for, and what you are willing to give up in return. The more money you need, the more you will have to trade (usually as equity in the company), so carefully plan every detail of your venture before you start the conversation about investment.

-K. MacKillop, a serial entrepreneur, is founder of LaunchX and authors a small business startup blog. The LaunchX System is designed to help entrepreneurs start a business based on their own idea. It includes step-by-step business startup instructions, key software, business tools, and more -- a complete business kit. Visit LaunchX.com to learn more about this revolutionary way to become an entrepreneur.

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Choosing Between Debt Financing or Equity Financing

Finance managers world over are faced with the choice between debt financing and equity financing when looking for finance for their businesses. Both the types have certain merits and demerits. A little demystification will perhaps help towards the decision making process.

Debt financing the pro's and cons
Debt financing is basically when you take loans from financial institutions, banks or government agencies which need to be repaid over a fixed time period. Debt financing has certain advantages and disadvantages, which are listed below.

The positives
The lending institution or bank has no say in the internal decision making of the business and has no ownership in the business. There is a tax advantage since the interest on the

Disadvantages:
Loan repayments may be used for working capital and cause cash inflow issues ultimately affecting growth.

• Flexibility with regard to repayment time is mostly non-existent.
• Too much of debt may cause your business to be identified as high risk entity and hence negatively affecting prospects of raising additional capital in the future.
• Your business may become vulnerable if your cash flow is affected owing to several reasons, such as drop in sales. This is especially true for new businesses
• You may have to provide assets of the business as security or collateral.

Equity financing
Equity financing is when an investor finances your business in exchange for ownership of shares or stakes in the business. The investing entity reclaims the investment from future profits. The advantages and disadvantages of equity financing are as follows:

The positives

• You don't have to repay the money and hence it is less risky than a loan.
• You can access the investor's network, adding more credibility to your business.
• Your working capital is not affected due to loan repayment compulsions and business growth gets a boost.
• In case the business fails, you don't have to repay the investment.

Disadvantages

• Loss of autonomy since the investor has certain control over the functioning of your business and also shares your profit.
• You will have to consult the investor while taking decision, which may result in disagreements and friction
• At times the returns taken by the investor may outstrip interest rates payable on loans.
• Finding an appropriate investor is both time and resource consuming.

The Final Call
Both forms are essential financing tools for a business and the decision as to which tool to make use of depends on the long-term business goals and the amount of autonomy or control that you wish to retain over your business. Ideally a business needs to use both the tools according to specific situation and needs. It is usually argued that new business may be in a better position if it goes for equity financing and then gradually also includes debt financing to its portfolio. As per experts, an ideal debt-to-equity ratio for a business should be between1:1 to 1:2. Stephen Hine makes it easy for you to finance your business growth through various sources of business lending. Sign up for his turbocharged, free newsletter to find out how to grow your business using various forms of debt and equity at Australian Finance Market

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Business Line Of Credit - A Good Source Of Credit For Your Business

There is always a need for cash if you want to start a business or if you want to keep your business running. There comes a time when funds are low and you badly need them. What you do is you get funds from other sources and one of these is business line of credit. Business line of credit is often given by banks, funding institutions and licensed lending companies.


You can use this type of financing in order to pay your bills, buy equipments and even maintain the operation of a business. In applying for it, remember that you need to tell the bank or lending institution how you are going to use the money. The advantage about the business line of credit is that it is usually easy to apply.

The problem with it is that you must have an established business. This is because of the fact that businesses that have existed for many years is more likely to continue its operations compared to a business that has just started. The first two years of a business is probably the most difficult one. During these early years, a lot of businesses failed and stopped their operations. Lending institutions and banks don't want to gamble on them. These are the trying times of the business and once it has been surpassed, it would mean that the business is feasible and that it is properly managed.

The credit can be used for your short term needs. It can be used as a merchant capital in order to buy materials, stocks in the inventory and other supplies. Once you have an established business, you will be capable of applying for it. You can now apply for credit but make sure that you have good credit rating and that your company is doing well. If not, then it is difficult to get the approval of these lending companies.

To check if you are eligible in applying for a business line of credit, you may inquire at banks and other lending companies. It is best to approach banks wherein you have made transactions before. By doing so, they will be able to see your records and the business dealings that you have made. If you have a good credit history, the chances of getting approved in your application will be high. Whether you need merchant capital or other funding, remember that business line of credit is there to help you.

Opting for [http://www.principiscapital.com/business-line-of-credit.aspx]business line of credit is a good way in getting [http://www.principiscapital.com/merchant-loans.aspx]merchant capital. You will be able to get the funding that you need for your venture.

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Business Start-Up - The Finances

When you're just starting, how to run a cleaning business is not as much of a concern to you nor are cleaning business opportunities. What matters is actually your capital investment. The house cleaning business, especially if you start out as with residential cleaning services doesn't really require much capital as compared to if you're going to offer commercial services. However, the point still remains that no matter how small it may be, but you will still need a capital investment for your business.

Now when it comes to the financing of your business, there are actually two types of financing: equity financing and debt financing.

Debt Financing
Debt financing is the most common type of financing when it comes to starting a new business. This kind of financing involves you, the owner, to borrow money, which includes loans, a lease, a line of credit, and the likes. This is the kind of debt wherein you pay interest in order to finance the original amount that you borrowed. You can avail of this kind of financing through banks, credit unions, lending companies, credit card companies, even suppliers, and so on.

Debt financing includes you and the money lender having an agreement on the terms of payment - how much to pay every due date, and every when is your due date. In order to avail of this, the financial institution first asks to see your house cleaning business plan, and basing everything on that, they will decide if you are a good investment for them or not. Thus, debt financing means applying for a loan - but not all loans are approved; only the bankable ones.

Equity Financing
Equity financing, on the other hand, doesn't entail you to borrow money. Instead, that portion of the business' capital is provided by a partner or a stockholder of the business. Having a partner takes care of the portion of the capital, and also opens more cleaning business opportunities with that person's skills, area of expertise, and pool of prospective clients. So it is not only the finance that a partner helps you out with, it is also with other aspects on how to run a cleaning business.

A cleaning business is simply like any other businesses out there. It needs your care, it needs your attention, and it needs your support. So treat it as you would treat a child that you value and love so much. For certain, that kind of dedication would make your business grow and rise to success. But remember, never ever stain your business' name or credibility - pay well.

Janice is an expert in cleaning services. Her experiences have given her insights to share to those who want to get into the business of servicing people's houses and establishments. She believes that everyone deserves to learn, and it is up to the person to exert the efforts to make it work. Know more about Janice and her work at http://www.cleaningbusinessstarterkit.com

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Equity Financing - 6 Key Strategies

When starting a business, it can be an all-consuming affair, something that becomes so ingrained in your life that it can feel like a part of you. When seeking equity financing, you will likely be required to give up a small portion of yourself and your business in order to achieve the end result of additional funding. In addition, you might think you and your business are an easy sell, but it can be quite difficult to find an investor willing to take the risk and invest.

The first step in equity financing would be to determine which small business option for financing best suits your needs. There are a variety of plans, but some of the most common are as follows:

Grants
The use of grants is an option for equity financing, and it can be a very attractive alternative. Various government entities give grants to support small businesses. Many times these grants are targeted to an industry or type of ownership, like technology or minority owned businesses. The competition is high for these grants, but if you are awarded one, feel lucky, as it is basically "free money" that does not have to be paid back, although there are usually stipulations on how the money can be used.

ESOP
ESOP stands for Employee Stock Ownership Plan. In an ESOP, employees can purchase shares of stock in the company by paying cash or by agreeing to reductions from salary or benefits. The employees become part owners of the business and you have additional funds for other business purposes. This option can provide greater loyalty, harder working employees, and additional financing to aid in the growth of your company.

Franchising
Franchising is a means of growth financing in which in which the franchisor "sells off" expansion rights to another party. Typically the franchisor will receive an initial franchise fee, service fees, equipment sale or lease fees, and royalties from the business.

Venture Capital
Venture capital involves an investor who regularly takes risks with business in the hope of seeing fast and lucrative returns on the investment. There are three tips you can use to protect yourself and your company when dealing with venture capitalism:

-Be on your guard. They are a business first and foremost and will look for weakness that can benefit the deal they make with you.
-Pay attention to detail or "read the fine print". You need to know what you are signing and it is best to involve a lawyer in such transactions.
-Need to know, as in they are on a need to know basis. Keep up on communication, but do not divulge too many trade secrets. The use of confidentiality agreements and patents are very helpful in this area. Nothing is free in this world- that should include your great ideas!

Venture capital will infuse your company with funds that originate from private sources, but remember that they are looking for companies with great potential and a rapid growth rate. This potential is also usually paired with the need for a larger financing sum and thus makes venture capitalism a more risky venture. The company that is being invested in will need to produce almost immediate and substantial results. The amount of time that venture capitalists typically invest in these types of businesses can vary, but is often a period of three to seven years, as long as there is at least a 20-40% annual return in profits. When big money is invested, big money is then expected in return. Don't be surprised by the fast paced and pressured atmosphere that can come when dealing with venture capitalists, that is just part of the game. Are you prepared to play?

Now, let's say that you have weighed your options and decided that VC is the correct path for your business. The reality is that VC deals can be difficult to attain, as the percentage of companies that achieve such financing is minuscule. Emily Mendell, a spokeswoman for the National Venture Capital Association estimates that of every 100 business plans VC's are sent, about 10 of these get a cursory glance, and one achieves funding. One way to know if you are VC material is finding out the specifics they are looking for. Aside from the previously stated matter of rapid financial return, venture capitalists seek out companies with great potential and who are in a booming field. For example, being involved in technology or a medical field will give you a leg up on the competition, as will being in a desired location such as the increasingly profitable Silicon Valley.

Angel Investing
Another financing option can be found through private investors or "angels". They are people who are actively seeking out new investments for various reasons. Angel investors are typically a less demanding group than venture capitalists, and often times you will find less pressure and demands in their financing agreements. You should be aware that they are still business people who will want results and financial success, but they are also people who are likely to help you out. Know that many times angels are looking to invest more than just money, as they can bring your venture knowledge, contacts and mentoring. Angel investors are often people who have or have had their own businesses and can aid in putting you in contact with a valuable network.

Angels have slightly different terms than your average venture capitalist, but be sure these terms are clearly outlined and understood by both parties. Some angels are willing to offer extremely low interest rates on loans in an effort to give an added push to the company when starting out. Other terms might include giving equity interest to the angel in conjunction with an "exit" clause that can include a mandatory buyout or a public offering of stock. The expected returns that angels expect from a company are usually about three to five times their initial investment, an expectation that stands in contrast to venture capitalists, who desire a return of five to ten times greater than their original investment.

IPO
Another option available is the IPO, or initial public offering, which can be attractive to many budding businesses due to the success stories associated with such a strategic move. A company that was previously held by a group of private investors would open itself up for sale of ownership shares to the general public. It is an option with a number of benefits ranging from notoriety, or getting your business in the public spotlight, to achieving rapid funding to be used at your disposal. Previous debts can be paid off, new improvements made, inventory acquired, etc. Investors can greatly benefit form IPO's as well. The publicly held stock is more "liquid" or able to be sold quickly if the business starts to have a downward trend. This lessens the risk factor for the investor.

Choosing to "go public" however involves letting a larger group of people into the inner circle of your business. Beyond that, you must consider the addition of the federal and state official's oversight. Federal and state laws govern the sale of business securities and sifting through all the complexities of these laws can be tedious. Be informed on what your state laws consider a "security" as they can differ from federal law. Being aware of the finer points involved with IPO's is not just beneficial to your company, it is crucial to your business and financing future.

Look over your options and give serious thought about what would best accommodate your needs. You need to know the risks involved with all methods of financing and ascertain whether it is worth the risk to take that particular route.

For more on these topics visit Dyer Consulting Group..


Aaron Dyer is President of Dyer Consulting Group, a firm that works with start-ups and small businesses who want to increase the value of their company. He helps them focus on ways to grow their business through better strategic planning and financial management, which have led to higher revenues and greater profitability for his clients. Aaron brings over 12 years of proven financial, business development, strategic planning, sales and marketing, and management expertise to his clients. His passion for helping companies improve their operations and create value compelled him to found Dyer Consulting Group.

Visit Dyer Consultung Group on the web at [http://dyerconsultinggroup.com]

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What is Debt Financing?

Almost all businesses, big or small, need to borrow money at some point. Whether it is for large assets such as land and buildings, or simply for supplies to keep a business running, debt financing plays a major role in modern business. Put simply, debt financing is the borrowing of money to keep a business running, to expand a business, or to acquire assets. Long term debt financing is usually associated with larger assets such as machinery, equipment or real estate, and it is paid back over many years. Short term debt financing, on the other hand, is most often used for business operations such as supplies or payroll, and it is often paid back within a year.

The alternative to debt financing is equity financing, which involves the acquisition of money from investors and/or savings. However, we will focus on debt financing in this article.


While most companies in Britain receive their financing from internal finance, 39 percent rely on external sources of finance, usually debt financing in the form of a bank loan. The business will agree the term of the loan and the interest rate, whether variable or fixed, with the lender. As with any loan, companies will have to show the bank how it is going to repay the money and secure the loan against an asset. The asset will usually be a premises or a piece of equipment that covers the value of the loan. In addition, a bank may require that some kind of personal asset is offered as security.

Financial institutions tend to favour companies that have good management, a reliable projected cash flow and good growth potential. The business may have to demonstrate that it can meet the monthly payments from projected revenues in its business plan. Of course, the company will have to comply with the payment schedule specified by the lending institution, and it may run into trouble if it deviates from this. Longer term loans are usually provided in this manner.


Debt financing products
Companies looking for debt finance to cover day to day running costs often opt for an overdraft instead of a long term loan, although these are falling in popularity because of high interest rates, steep fines and the obligation to repay on demand.

There are many options currently available for companies looking to avail of debt financing. Factoring and invoice discounting allow small businesses to take loans out against sales, while leasing allows for the borrowing of money to buy machinery or equipment. However, term loans remain the most popular with businesses and with banks. From the point of the view of the financial institutions, it allows them to impose regular repayment schedules over fixed periods, which is less risky than overdrafts. Many companies are known to have fallen foul of the banks because they were unable to repay overdrafts when asked. This provides an overview of the debt financing products available.


Every lending institution has its own products, rules and rates so it is worth while for any business to shop around for an arrangement that suits its needs. Some companies even offer credit cards designed for small businesses to pay for day to day incidentals. However, these can become an expensive luxury if the balance is not cleared every month.


Debt over equity
Debt financing remains more popular than equity financing for a number of reasons. Interest paid on loans can often be deducted against taxes, and debt finance is available in small, accessible amounts, whereas equity finance tends to be in large amounts. Also, with debt financing the lender has no say in how the business is run and has no rights to any ownership or profits of the business. Another advantage is that business profits can be kept within the company while the loan is used for day to day running or the acquisition of assets.

Debt financing is not a suitable option for all businesses. However, for small businesses where equity financing is not an option, it can be a valuable service in the day to day running of operations and the purchase of equipment. While loans often tend to be short term and at high interest rates, debt financing remains a popular choice for many companies.

If you are interested in learning more about debt financing, take a moment to provide us with some information, and a SimplyFinance representative will contact you to discuss what your next step should be. There are hundreds of debt financing offers available out there, so let us shop around to find the best debt financing option for you.
  http://www.simplyfinance.co.uk

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Retail Financing - Getting The Funding That You Need For Your Business

Opening a retail business can be tricky if you don't know how to do things the right way. Putting up one is different from maintaining it. Starting a business poses a lot of risks because whatever plan you make in getting profits, you will still never know what will happen until you start it. A lot of businesses and entrepreneurs have experienced bankruptcy and losses because of the expenditures that have not been anticipated. Retail financing is the answer to your problems.

Setting up a business can be easy compared to continuing its operation. I have seen and heard many stories about businesses being put up successfully but have failed to maintain its existence. Some reasons behind this are expenses from damages due to natural and man-made causes. Another reason could be due to poor marketing of the products or services and other business were not just managed properly.

You can still save your business before it is too late. If you want to realize your business or if you just badly need funding then, you can opt for retail financing.

Sometimes, the clients do not pay on time and yet the company or the business badly needs financing in order to continue its operation. From buying the materials needed to paying the costs of operations, retail financing can answer it.

These financing companies offer a lot of options for you to choose from. This makes it much easier because you can choose the option that best suits your business.

Bank loans are very time consuming before your application can be approved. You also need to comply with a lot of papers and documents before your application can be processed; who knows you might even be rejected and just wasting your time.

Unsecured business lines of credit is a good way for the badly needed funding. This type of financing doesn't go through a lot of tedious paper works and weeks of waiting for the approval. Processing takes only a couple of days.

Through unsecured business lines of credit, you don't have to put something as collateral to the money that you borrowed. It is easy to obtain compared to banks but the only downside of this funding is that their interest rates are a bit higher.

A lot of businesses have chosen unsecured business lines of credit to cater their financial needs because there is a higher chance for them to be approved compared to banks. Just don't forget to have a good credit score or credit history because these companies will surely be looking at them.

If you are in dire need of financial support you can go for retail financing or unsecured business lines of credit. It saves you time and takes away the hassle of processing documents. A lot of companies offer them today, just make sure to choose the right one that can give you the best deal.

Having access to [http://www.principiscapital.com/unsecured-business-line-of-credit.aspx]unsecured business lines of credit like for [http://www.principiscapital.com/retail-financing.aspx]retail financing purposes is ideal for any type of business. For the best packages, check out Principis Capital today.

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Business Capital - Working Capital Financing Options

There are several things that business owners must take care of, even if they claim they merely have a small business. Not only do they need to monitor the supplies they have so they can continue to offer customers quality products and services, they must also keep a close watch on their human resources, as well as their business capital. It is no secret that capital - may it be human or financial - is the lifeblood of any business. And if your chosen venture appears to not have the business capital it needs to spend for daily requirements of the business operations, this can easily endanger the life of your business.

So what does one need to have access to additional business capital? It can help to learn more about different options that working capital financing firms offer. These options can range from small business loans to merchant cash advances to credit card factoring to business lines of credit (which can be secured or unsecured). It can be to your advantage to learn more about these options so you can better gauge which option can best help you meet your working capital needs.

Among the many options you have, small business loans seem to remain to be the most popular. It can help to have good credit history if you are applying for this kind of financial option because the approval of your loan can depend much on your credit ratings. You will also need to comply with collateral requirements and later on deal with repayment schedules that can prove to be harsh. By now you might already be giving this option a second thought.

An alternative is to apply for a merchant or business cash advance. This does not require you to have good credit ratings but having so can be a plus. All it requires you is to accept credit card payments because the amount of money you can borrow depends on the volume of your average monthly credit card sales. The same is true with credit card factoring.

In paying off money borrowed through cash advances and credit card factoring, you will no longer need to deal with harsh repayment schedules. All you need is to see to it that you have good credit card sales volume because repayment is based on a small percentage of it. So you do not really need to have a certain amount of cash in your hands to pay for the amount borrowed on a certain date.

For a more creative [http://www.principiscapital.com/business-capital.aspx]business capital strategy and [http://www.principiscapital.com/franchise-loans.aspx]franchise loans alternatives, visit our site today.

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Merchant Funding - Business Lines Of Credit Online

How difficult can it be to obtain additional merchant funding? It can be very difficult indeed. Not only does a merchant need to have good credit ratings, he or she might also need to wait for several weeks and even months before the receipt of the additional funding applied for. This is quite what happens when merchants apply for small business loans. And to help merchants, there are several alternatives to small business loans as far as obtaining additional funding or capital is concerned. One of these alternatives is a business line of credit online. It can help to learn more about business lines of credit and other funding alternatives so merchants do not need to say goodbye to their business quite prematurely.

With the right kind of merchant funding, merchants can have the chance to grow their business on their own terms. This can also mean freeing merchants from months or years of repayment of small business loans. So it can really help to know more about financing alternatives so that merchants can best determine which option can best meet their needs.

Such is the case for an unsecured business line of credit online. This type of merchant funding can allow merchants to borrow up to half a million dollars, depending on the volume of their monthly credit card sales and how long they have been in business. The volume of monthly credit card sales is often an alternative prerequisite to having recent good credit ratings. It can help to evaluate different financing firms that offer this kind of alternative so merchants can have a better idea of what they are getting into. And it is quite important to find a financing firm that will not limit a merchant in terms of the use of the amount borrowed.

Why is this so? Because there are some firms that require merchants to only use the additional funding for expansion purposes. So it can really help if the financing firm will allow merchants to use the additional funding according to the needs of their business like equipment purchase, debt consolidation, remodeling or expansion, securing working capital, and advertising and marketing.

When it comes to merchant funding options, an unsecured business line of credit online is starting to grow in popularity. No longer do merchants have to limit themselves to small business loans that can come with harsh repayment schedules. With an alternative like this, merchants can have better chances at success.

For more creative http://www.principiscapital.com/restaurant-finance.aspx strategies and http://www.principiscapital.com/restaurant-finance.aspx  alternatives visit our site today.

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Business Cash Advance For Merchants

It is not unusual to see merchants who seem to be quite satisfied with the sales they are able to generate. However, beyond the good sales performance that they might have, many of them are facing problems with their finances. Whether it is to make repairs on their shops or to expand to a new product or service line or may it be to purchase additional supplies, many of them need to have easy access to additional capital. You might think that they can simply apply for a small business loan but it is not always that they can qualify for one. This is why many of them resort to other financing options, like a business cash advance.


Also referred to as a merchant cash advance, a business cash advance can provide merchants the additional capital they need without the hassle that is often associated with applying for a small business loan. Through this kind of financing option, merchants no longer need to worry about the business credit ratings. There are even some financing institutions that are not strict on the documents that merchants have. Generally, what they are looking at is the average monthly credit card sales volume that merchants are able to generate.

With a merchant cash advance, merchants no longer need to wait for weeks and weeks on end just to get their application approved. Some providers can give merchants access to additional capital in as fast as two weeks. To someone who is in need of additional funds, this already means much.

Most merchants these days prefer getting a business cash advance instead of applying for traditional small business loans. They have several reasons for doing so and one of them is the more lenient payment schedules. Most providers allow repayment of the amount owed through cutting a small percentage from the monthly credit sales of merchants. This can prove to be way lighter than having to come up with a large sum of money on a specific day of the month.

There are several other options for merchant capital financing. Learning more about them can truly be to your advantage. And in doing so, you will not easily give up on your business during the most trying days, especially if you know there is a firm that you can turn to for a merchant cash advance. So if you have run out of much needed capital, try to approach a financing firm about this kind of option.

To learn more about how to qualify for a business cash advance visit our site today. We are experts in the merchant cash advance industry!

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Business Cash Advance - Finding Ways To Get That Business Financing

Maintaining a business is never easy. It constantly pushes you to the limits and challenges always arise. Sometimes it gets worse especially if you don't have the funding or resources that you need to keep things going. Almost every business, whether big or small, has undergone this type of situation wherein the finances are badly needed in order to continue the operation of the business.

Although proper finance management can help in preventing this type of situation, the chances of the business needing more funds can't be eliminated. Financing is required to buy the raw materials, pay monthly expenses and even in expansion of the business. Business advance is here to answer all your financing problems.


Before, owners that need cash opt for business loans from banks. This type of loan is one of the most terrible burdens that a company wants to have. It requires collateral, its rate of interest is very high and it requires a fixed payment scheme.

A lot of business owners have lost their assets because of this type of financing. Putting your property or assets at risk can be stressful. By not making the payments on time, it is easy for the banks to take them. With a lot of issues concerning this type of loan, many business owners are looking for better ways to get the financing that they need. Business advance is the answer.

Business cash advance is gaining popularity during the recent years. It is a popular method for financing businesses. What these cash advance companies do is to buy a number of Master card and Visa receipts from owners of businesses and provide them with a business cash advance. What the borrower receives is not a loan but rather a cash advance.

The advance company is paid by future Visa and Master card receipts through the account of the merchant or the borrower. The borrower doesn't have to pay the company personally. When a transaction has been made in the borrowers business and it is paid through Master card, a percentage of that payment goes directly into the cash advance company. It eliminates the hassle of paying that is why it is convenient.

The advantage to this merchant cash advance is that there is no need for a fixed payment scheme and no collateral is needed. If there are only a few customers who pay using Master card, the borrower need not worry because it is not his obligation anymore.

If you are in need of resources for your business, then merchant cash advance is here for you. You don't have to worry about monthly payment schemes or putting your assets on the line as collateral. The merchant cash advance company will take all the risks. If your sales are down, the burden will be on the part of the company. It is a good way to get financing because it is a win-win situation for everybody. Merchant cash advance or business cash advance helps businesses in all their endeavors. For the best deals, check out Principis Capital today.

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Business Cash Advance - The Answer To Your Small Business Funding

There are a lot of challenges that you can face when you have a business. One of these challenges is the stability of your finances. There are a lot of businesses that have failed because they lack the necessary funding. All businesses require business capital in order to continue its operations. From the salary of the employees, purchase of raw materials, and even as payment for monthly bills, money is used in a lot of ways. Without it, the business ceases to exist.

Because of the lack of cash, some businesses are looking for ways to get funding in order to continue its operations. Business cash advance is a method of getting financing. It is one of the most accessible and preferred business loans. It is one way of getting funds and the terms are not that difficult to comply.

Business cash advance has been around for many years now but it has only gained attention in the recent. This is because of the recent financial crisis. Almost everyone has been affected by the financial crisis. From the big businesses to the small ones, no one was spared. Because of what happened, a lot of businesses went bankrupt or have been left in an unstable situation. There are a lot of lending companies out there that are ready to help those small businesses to stand up again.

This type of financing is not a loan. It is a form of cash advance from the future sales that your business will have. It does not oblige the business to pay on a fixed payment method. It solely relies on their credit card sales. The lending company and the business agree on a certain amount to be advanced. They must also agree on a certain rate to which the business will pay in addition to the advanced money. All of these will then be paid by deducting a percentage of the credit card sales of the business.

As you can see, the business does not have to worry about a payment method. If they have low credit card sales they wouldn't be on a difficult situation, unlike those loans that require you to have collateral wherein if you have failed to pay on time, your property is at the risk of being taken away from you. You don't want to put your property on the line.

If you need business capital, you can go for business cash advance. It doesn't have a lot of requirements and you don't need to pay on a fixed method. You will be able to get the financing that you need in no time and your business will continue to operate.

With business cash advance , you will be able to get the business capital that you need. If you want to know more, visit our website today.

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Grants for Small Businesses

Starting a new business can take lots of capital that may not be available.  It is possible to apply for grants if you are willing to do the research and have the criteria that grant-giving organizations are looking for.  Many small businesses are turned down on grant applications simply because the request was not filled out properly.  Others fail to submit to matching organizations for consideration.  Learn everything that you can about grants before embracing the process.


are given by individuals, government entities and private institutions that want to make money available to further a cause.  The government is the least likely to consider small businesses for grants.  Medicine, education, technology and scientific research are the government's main focus geared mainly at nonprofits and educational centers.  If a new business is going to better the community with green energy, your chances of finding an individual or institution offering grants are good.  If, on the other hand, you want to start a daycare center or a clothing retail shop, a grant is not the place to look.

Many think that a small business loan and a grant are similar but they are miles apart.  A small business loan may loan you the money if you are personally creditworthy and charge a certain percent of interest.  A grant never has to be paid back.  Working toward a goal that is set by the grant giver is all that is asked.  Most grants are to be utilized by an entity that will work toward new technologies or provide a service to the public through a nonprofit classification.  Hardly ever do they offer the money necessary to start a new business.

Small businesses that have a history of working toward a sustainable goal of developing new ideas can qualify for non-government grants.  There are also many grants that target certain nationalities, sexual orientation and other discriminating factors.  By meeting these qualifications, your chances are higher than those who do not.  If you can pass this first hurdle, there is still much work to do.  You have to lay out a plan with objectives that you want to meet and sometimes, provide counterpart funding.

There are thousands of grants given to small businesses each year but it takes perseverance to wade through the grants available and then try to meet the objectives just to file.  But if you have a goal and a great start to make a better world, the time and effort is worth it.  There are tons of sites on the Internet that offer ways to find grants for small businesses in your particular category.  If you belong to a minority group, the search can be even faster.
Grants provide a way to help small businesses and individuals advance in areas that can benefit the economy, alternative energy, the arts, curving pollution and much more.  If you feel that your field of study is not worthy of a grant, look around.  You will be surprised at the selection.