Proceed
to Quiz: Are you right for Venture Capital?
Proceed
to Quiz: Are you right for Financial Angels?
Proceed
to Quiz: Are you right for Corporate Strategic Alliances?
Proceed
to Quiz: Are you right for Commercial Banks?
Proceed
to Quiz: Are you right for Asset-Based Loans?
Proceed
to Quiz: Are you right for Leasing?
Proceed
to Quiz: Are you right for Insurance Companies?
Proceed
to Quiz: Are you right for Small Business Administration (SBA)?
Proceed
to Quiz: Are you right for Local Government Programs?
Proceed
to Quiz: Are you right for Tax Increment Financing?
Raising money for your business
is not easy, but it does not have to be frustrating. Most entrepreneurs
don’t raise money regularly and are not aware of all types
of financial sources and financial instruments. This test is designed
to help you get an initial understanding of what the financiers
look for in businesses they finance, and to check whether your
business needs are right for them.
The Right Financing should
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• Be easier to obtain in
time, cost and frustration.
• Be better for your business in matching your business and personal needs
and criteria.
• Allow you to achieve your reasonable business goals. |
The Right Financing for a business includes:
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• Right
Financial Sources: Those that fit the company’s needs
and financiers’ criteria. In general, sources can be
classified as:
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• Private
Lenders: Commercial and savings banks; asset-based lenders;
leasing and venture leasing companies; insurance companies;
factoring companies; and real estate lenders.
• Investors: Angels; corporations; venture capitalists; mezzanine financiers
and real estate investors.
• Development finance sources: Local, State or Federal sources offering
equity, loans, subordinated loans and grants; sources offering financing for
various considerations, such as size, minority status, location, job creation,
real estate development, high-tech development, exports, etc.
|
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• Right
Financial Instruments: Debt, equity or hybrids (such as
convertibles and warrants) should be matched with the type
of asset, the cash flow available, the risk, the payback
term, the cost and the conditions (terms and covenants).
• Right
Structure: Selecting the right amounts to be raised at
each stage to satisfy business needs while reducing dilution;
and choosing the right financial sources and instruments
that best meets the needs of the company. |
This test focuses on some of the popular financial sources.
For more on financial sources and instruments, see "Financing
Business: How To Do It Right!" by Dileep Rao. For more on
structuring, see "Financing Business WORKBOOK: How To Structure
It Right!" by Dileep Rao.
Please note we do not guarantee that you will find financing or
that the information in this test is totally correct. It represents
our best judgment and information obtained.
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