Tips for Finding Money Now
A list of some of the best sources for financing. Includes information about bank loans, nonbank creditors, private and public equity sources, and international finance.
From: Inc. Magazine, March 1999 By: Jill Andresky Fraser
How to Finance Anything
Despite the tumultuous and unpredictable state of today's capital markets, entrepreneurs still have plenty of ways to raise funds for their companies. Here are 20 that offer particular promise in the current economic climate. Some represent new marketplace solutions to the perennial financing problems of business owners; others offer new twists on time-tested strategies or financing tools. But don't get us wrong--we're not suggesting that you overlook traditional financing strategies, such as approaching angel investors or proposing financing deals to your customers or suppliers.
Bank Loans
1. SBA Express was launched last fall in yet another effort to lessen the paperwork hassles attached to applying for a Small Business Administration-backed loan. Bank-qualified business owners can borrow up to $150,000 without going through the standard SBA application process and are guaranteed a loan decision within 36 hours. Since the loans are guaranteed by the government agency only at 50% of their face value, many of the 500 or so eligible "preferred" lenders (which include commercial banks and other financing institutions with good track records on their other SBA loans) have yet to sign on.
2. Community banks, the antithesis of all those huge financial institutions that are merging and acquiring themselves into the deal-making stratosphere, offer the best (and maybe the only) chance for many small or young companies to start building a banking relationship. While the small banks may have fewer products than the giants do, their advantage to entrepreneurs is their flexibility. To locate possible lenders in your region, contact the Independent Bankers Association of America, which can provide leads to more than 5,000 community banks.
3. The (self)chosen few is the way we like to think of that select group of national banks that do more than just talk about their interest in backing start-up companies. Their loan officers are out there--even in today's chilly credit climate--aggressively launching new products and actually approving deals. Silicon Valley Bank perennially crops up on this list; so, increasingly, do Chase and Fleet Bank.
Source: http://www.inc.com/
From: Inc. Magazine, March 1999 By: Jill Andresky Fraser
How to Finance Anything
Despite the tumultuous and unpredictable state of today's capital markets, entrepreneurs still have plenty of ways to raise funds for their companies. Here are 20 that offer particular promise in the current economic climate. Some represent new marketplace solutions to the perennial financing problems of business owners; others offer new twists on time-tested strategies or financing tools. But don't get us wrong--we're not suggesting that you overlook traditional financing strategies, such as approaching angel investors or proposing financing deals to your customers or suppliers.
Bank Loans
1. SBA Express was launched last fall in yet another effort to lessen the paperwork hassles attached to applying for a Small Business Administration-backed loan. Bank-qualified business owners can borrow up to $150,000 without going through the standard SBA application process and are guaranteed a loan decision within 36 hours. Since the loans are guaranteed by the government agency only at 50% of their face value, many of the 500 or so eligible "preferred" lenders (which include commercial banks and other financing institutions with good track records on their other SBA loans) have yet to sign on.
2. Community banks, the antithesis of all those huge financial institutions that are merging and acquiring themselves into the deal-making stratosphere, offer the best (and maybe the only) chance for many small or young companies to start building a banking relationship. While the small banks may have fewer products than the giants do, their advantage to entrepreneurs is their flexibility. To locate possible lenders in your region, contact the Independent Bankers Association of America, which can provide leads to more than 5,000 community banks.
3. The (self)chosen few is the way we like to think of that select group of national banks that do more than just talk about their interest in backing start-up companies. Their loan officers are out there--even in today's chilly credit climate--aggressively launching new products and actually approving deals. Silicon Valley Bank perennially crops up on this list; so, increasingly, do Chase and Fleet Bank.
Source: http://www.inc.com/
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