Small Business Financing Presentation

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Presentation Description

www.Cash4Impact.com This narrated presentation explains the why, what, and when for small business owners to raise funds or procure financing. The presentation is given from a strategic viewpoint to help small business owners consider all sources of financing.

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Presentation Transcript

Financing Your Business:

1 Financing Your Business Tools to Raise Capital for a Small Firm or Start-up 1. Traditional Debt 2. Alternative Debt 3. Equity 4. Blended Debt/Equity 5. Additional

Financing Perspective Innovative Approach :

2 Financing Perspective Innovative Approach View Your Business As A marketable asset A source of long-term wealth A creator of jobs A source of investment income Yourself Others who believe

Debt Traditional Debt – Bank loans :

3 Debt Traditional Debt – Bank loans Alternative Debt Asset-based lenders Receivables financing Purchase order financing Equipment loans or leases Property credit lines Supplier or vendor financing Credit or charge cards Microlenders Peer-to-peer lending

Equity Sources :

4 Equity Sources Small Businesses Personal Investment / Family & Friends Angel Investors Joint Ventures Strategic Investors Direct Public Offerings (DPOs)

What Investors Want:

5 What Investors Want A strong return on investment Ranges from 8% (friendly, debt) to 40% A clear pay-off date (exit strategy) Typically, 3-7 years A strong management team A base valuation of company A plan to accomplish goals

Blended Debt/Equity:

6 Blended Debt/Equity Brokerage accounts Mezzanine finance Acquisition financing

Additional Sources :

7 Additional Sources Co-branding – combine efforts to reach target market Co-operatives – pool funds Customer deposits or pre-pays Equity as payment Economic development grants Licensing Self-directed IRAs Swaps or bartering

Acquiring Companies Acquisitions:

8 Acquiring Companies Acquisitions Owner financing Supplier or Vendor financing Mezzanine financing Bank debt Receivables financing Pre-paid sales

Getting Started:

9 Additional Information: Solving the Capital Equation: Financing Solutions for Small Businesses Available on Amazon Or get the ebook Help! I Need Money for My Business Now!! www.smallbusinessfinancingresource.com Getting Started

Contact Us:

10 Thank You! Toca Family Business Services Follow my blog, Small Business Finance Forum: http://blog.smallbusinessgrowthcapital.com Tiffany C. Wright Contact Us