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Small Business Start Up Loans, Business Financing, Venture Capital Funding and MoreThe Capital Connection is a Portal for Entrepreneurs. It's better than a search engine and more than a directory. We not only list and link services and sources but also give you a description. If you're looking for small business loans, business financing, or venture capital funding you've come to the right place. The categories are listed on the left hand column. CategoriesAcquisition FinancingFor management buyouts or acquiring an established business acquisition financing can provide the necessary funds. Many small business loan sources, including SBA loans, also will provide funds to acquire a business so check loans too. The amount of funding provided depends on the assets of the business, and the income. Bankers look at the credit worthiness of both the business and the individual buying the business. It may be necessary to personally guarantee the loan as well. If the business owns real property it may be possible to mortgage the property and use the proceeds to purchase the business.Alternative FinancingThis includes sources for purchase order financing, trade and barter, factoring like asset based financing, and joint venturing. Invoice Factoring from a company like Universal Funding does not depend on the credit worthiness of the business in most cases requesting to factor. It does depend on the size of the receivable, or total of invoices, and the customer who owes the money. Terms vary. Sometimes the customer is asked to pay the factoring company directly, who then passes on the money to the business. In other cases there's no notification. Go to Alternatives Private Equity InvestorsAngel networks and clubs to help you find a private investor. Individual accredited investors provide much more capital for entrepreneurs and start up companies than venture capital firms. There are roughly only about 1500 venture capital firms in the United States and some 3 million private equity investors. So while individuals invest a smaller amount per company, about $75,000 they invest in many more companies than venture capital firms do. Business Incubatorssometimes called business accelerators provide mentoring services, office space, administrative assistance and sometimes capital. Most incubators are nonprofit but that doesn't mean they're free. The charge for the office space is somewhat higher than leasing commercial space or an executive office and the incubator requires an equity position in the company it assists. Find Private Incubators which are run on a for profit basis, and Nonprofit incubatorsCapital NetworksCapital networks seem to be making a comeback. In the heyday of venture capital investing, 1998 to 2000, the Internet saw quite a few networks. When the VC bubble burst the majority folded. Capital networks include on-line and off-line "matching services", "screening services", and "publications". Fees vary from a token monthly amount to thousands of dollars. Most of the networks charge the entrepreneur. Go to capital networks for an overview of each type of service and then links to the specific kind of network. Catalog StoreBooks, booklets, guides and directories to help you find capital. Develop a business plan. Set goals and objectives Business Finance Books Debt NegotiationThere are times when it's necessary to renegotiate debt the company may be carrying. Protect yourself against corporate insolvency by talking with a qualified attorney. If that happens it's necessary to carefully compare debt management options, debt settlement, debt consolidation,IVA and bankruptcy. More on debt negotiationGrants for BusinessesThere are grants for businesses but most of them are competitive or for non-profit organizations. Find a list of grants for businesses. Insurance is often overlooked when starting a business. You will of course need business insurance, errors and omissions insurance, If you have investors, you'll be required to have key man insurance. Double check your auto insurance. Investment Bankers, IntermediariesInvestment Bankers, Corporate Finance Consultants, Advisors and Intermediaries to assist you in your search for capital, private investors, loans, and venture capital. A word of caution most venture capitalists don't like to pay finder's fees. They want their money invested to grow the company. This also means they don't want the founder of the company using the money to payback any loan he or she may have made to the company. Investor DatabasesListings and databases of venture capital companies, private investors, small business investment companies, loan sources, leasing, and factoring companies. Some are searchable, some are just hard copy lists. In most cases investors want to live within a two hour plane ride of the companies they've invested in. Many want the company to be accessible in the same city. Look at the financing sources where you live before exploring out of state sources. LeasingLeasing isn't usually thought of as a source of funds, but rather as an expense. There is more than one type of leasing: venture leasing, equipment leasing, building and land leasing sources. LoansTraditional loans, small business start up loans, conventional loans, SBA (Small Business Administration), Loan packaging services and online loan application servicesLoan sources. Loans are based on the asset value of the company, or individual, and the ability of the company, or individual to repay the loan principle and interest. Start-up companies have a difficult time obtaining loans because they have no track record. They often don't have much in the way of an asset base either. Bankers or loan providers don't care that the company may be on the fast track to growth.Personal loans can be used to start a business as well. Be careful using credit cards to fund your business, the high interest rate can be a burden to you personally. If the company doesn't do well you'll be out of a job and you'll have maxed out your credit cards. Keep in mind when considering a loan that bad credit, or poor credit will be a barrier. Those factors also affect whether an investor, whether an individual, or a venture capital firm will consider investing in your company. If you can't manage your own money, their conclusion will be that you can't manage theirs. Venture CapitalThere are about 1500 venture capital firms in the United States and the Capital Connection has links to over 600 of them organized by state. Venture capital isn't appropriate for the majority of businesses. Only a small percentage, between 10-15% is invested in early stage companies. The majority is invested in established companies. Go to Venture Capital And now up to the minute venture capital news headlines. Survey of Venture Capital CompaniesWe asked venture capitalists all over the country the questions entrepreneurs want the answers to. Find out how long it takes a VC to close, do you need a referral, what's the most critical mistake entrepreneurs make in their business plan, how do VCs value a company, and more. Read the Profit Dynamics Inc. Venture Capital Survey. |
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