Where to Look For Capital?
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Exploring Financing Alternatives
Entrepreneurs overlook some very attractive sources of financing because they fail to spend the time and energy to find out what’s available.
Venture capitalists turn down 98 percent or more of the companies that contact them. To get financing from them, you need to know what they seek. Venture capitalists seek to invest in high-growth ventures that provide the expectation of extremely high annual compounded returns to balance the risk that they assume. They seek to invest large amounts usually a minimum of $1 million and up-in enterprises that have experienced management teams.
Your first step should be choosing Valued Representation and working with a
Professional VR business intermediary to UNLOCK THE VALUE IN YOUR BUSINESS!
For smaller amounts, many new ventures go to friends and family, and to professional individual investors called angels. Angels can specialize in high growth ventures in their area or in their industry.
Bankers prefer to lend to firms whose projected cash flow will repay the loan, which has adequate collateral to satisfy the loan if cash flow fails, and whose principles-the entrepreneurs-will commit their personal assets to guarantee the loan. These are the types of loans that help most entrepreneurs acquire the business of their dreams, whether through commercial lending and/or government backed programs.
The calculation of risk for a lender can be influenced by the history and projections of the company you wish to buy, the competitive advantage and proprietary technology, the expertise and experience of management (and yourself) along with many other factors.
From the perspective of the lender a business can fail and they nevertheless get their money back. This is the strategy used by asset-based lenders. Banks want businesses to have sufficient cash flow to be able to repay their loan and interest. They also insist on a secondary source of repayment, whether in the form of collateral that they can liquidate or guarantees from sources who could repay the loan.
Whether a first time buyer or a seasoned entrepreneur, VR can assist in finding the best finance source for your specific circumstances.
Is it Time to Consider a Career in Business Sales? A Simple Inquiry Could Change Your Life!
If you can’t find an existing business that meets your requirements for whatever reason, now could be the time to consider becoming a VR franchise owner. A career based on honesty, integrity, transparency, facts, and professionalism can be fulfilling on multiple levels.
Take the first step to learn how VR could be the opportunity you have truly been looking for by filling in the form below or if you would like, set up your own appointment. We look forward to answering your questions.
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