Posts Tagged ‘Financing’

Hudson Securities Completes $30 Million PIPE Financing for Chinese Motor Vehicle Company

Hudson Securities Completes $30 Million PIPE Financing for Chinese Motor Vehicle Company
Hudson Securities, Inc. today announced the completion of a $30 million private placement transaction for Jinhao Motor Company , a Nevada-headquartered company that manufactures motorcycles and small engines for overseas and domestic markets at its subsidiary in the People’s Republic of China.

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Six Words Describing Small Business Financing

This report was produced in a direct effort to provide more understandable insights about some of the most critical business finance issues effecting commercial borrowers. Our approach in this report is to describe current commercial loan circumstances in six words. We have adopted a similar model in other commercial finance reports such as “seven words to describe commercial property loans”. The “simpler is better” perspective reflects the belief that after hearing an almost endless number of reports about commercial lending difficulties, what small business owners might really need is a more concise explanation about these problems and the resulting impact on their business financing options.

Before proceeding, it is important to emphasize that small business finance options are often more complicated than anticipated by many business borrowers. It would be incorrect to assume that we are attempting to characterize business loans and working capital financing as simple and straightforward. Actually, we are making the opposite case. The unfortunate reality that most business financing processes have always been excessively complicated and that meaningful improvements are not on the way is one of our ongoing observations. We nevertheless feel that it is critical for each small business owner to have an absolute and total understanding of the entire commercial finance process in the face of the prevailing commercial lending complexity. This particular report is one of several thorough efforts on our part to help in providing more understandable insights about commercial loans and business banking problems.

“Banks are saying no more often” is our first example of six words describing business financing options. For any small business owner still unaware of this harsh reality and who might doubt this observation, a series of candid conversations with other business borrowers will probably remove all doubts. The primary point to remember is that banks are not currently providing an adequate level of business loans on a widespread basis. It is important for small businesses to realize that they are not alone when they hear their bank say no to routine requests for commercial financing.

A second observation is that “commercial property values have decreased dramatically”. There are very few exceptions. The biggest business financing impact is likely to occur with commercial refinancing situations. Many banks are aggressively recalling existing commercial real estate loans and this literally forces a borrower to seek business refinancing even if a business owner has no interest in refinancing their commercial mortgage. With decreasing commercial real estate values, business refinancing will be a challenge for most small businesses.

In another six-word description of commercial financing, “lines of credit are disappearing fast”. Even the most successful businesses need a reliable source of working capital financing, so this situation is especially serious if a business cannot replace bank financing when it suddenly disappears. Even if a business still has an adequate line of credit, it is important to realize that on a widespread basis banks are reducing and eliminating business credit lines with almost no advance notice.

“Business financing is in intensive care” is our final observation in this report. Small business owners need to be prepared to take more extreme measures such as firing their banker and finding alternative commercial funding sources. Nobody should expect that bankers will publicly announce that they are in any kind of financial trouble after recalling that they have not been sufficiently candid about commercial lending problems in the past. On the contrary, a prevailing outlook from most banks is they are lending normally to small businesses. Commercial borrowers will need a healthy amount of skepticism when dealing with any commercial lender.

As we noted, this article is one of several efforts to help small business owners survive an extremely challenging commercial lending environment. By describing commercial loan difficulties in six words, this report was intentionally designed to produce a concise overview of several complex small business finance issues. A review of related reports such as “seven words to describe business cash advances” and “six words describing working capital financing” should also contribute to a better understanding of practical business financing options for commercial borrowers.

Innovative Financing Ideas With a Focus on Small Business Funding

The Oxford Funding Company has been trading for the past twelve years. We offer a wide portfolio of services Like Lease Finance, Hire Purchase, Corporate Finance, Commercial and Residential Mortgages, Credit Repair and much more. We give a special emphasis to small business funding and have many flexible packages for entrepreneurs and start ups.

Our team consists of experienced professionals who bring with them over 50 years of combined experience in the finance industry with accounting, banking, and finance company backgrounds. Many of our team members have worked in or even run small and medium sized businesses. This gives us an edge when it comes to Small Business Funding.

The company was formed at a time when most brokerages failed to deliver services that met client needs. We decided that it was time to raise the standards of service in the industry and started as a small business which offered various innovative funding options. Today we have grown to include many prestigious clients.

Our mission statement is ‘To help businesses grow by finding the best funding package to fit each client’s requirements and situation’. We work towards this by sourcing the business funding options that offer you the maximum advantage. Our honest, efficient and friendly service has won us many long term clients. We treat Small Business Funding and corporate funding alike and offer the same efficient levels of service.

Our approach is to identify the right funding option that would help you leverage all the benefits possible in your situation. We work to find the most competitive package for small business funding or large corporate finance. Our aims are:

Get the UK ‘s Top Commercial Financing Solutions Including Small Business Funding

To always endeavour to secure the right funding for the right situation with borrowers and lenders who are fully aware of their commitment, and achieving a long-term satisfaction from the arrangement.

To find a competitive funding package customised to fit each client’s specific requirements and delivered in the fastest timetable possible.

To arrange loans at the lowest rate available in light of the client’s financial situation.

To ensure that you’re free to concentrate upon developing your business while we undertake the entire administrative burden until completion of the package, using the best computer systems to guarantee time is never wasted because of inefficiency.

To achieve a friendly, professional result with a broad range of competitive services that meet the clients’ funding requirements.

To avoid a funding or finance package that does not perform as promised.

To perform so that clients become repeat customers.

To offer a personal service with high standards always working to offer honesty, efficiency and excellent customer service.

We have plans for expansion including everything from Small Business Funding and medium sized business support to corporate finance. We are expanding our team to include specialists and will use their expertise to bring you many new advantages. We also strive to improve the levels of our customer service. So, whether you are looking for small business funding or any other kind of funding, you can approach us with the confidence that we will get you the best package available.

Call our specialist brokers, Glin or Peter on 01242 226662.

gknf- 5. financing your biz.MP4

ABS-CBN Bayan’s Armando Abrero discusses “Micro-finance: How to Start and Finance a Small Business (Financing Your Business)” with 1200 entrepreneurs at the Grand Kapamilya Negosyo Fair held in the World Trade Center, Manila on November 16, 2008.

Ayeah Games Closes Seed Round of Financing

Ayeah Games Closes Seed Round of Financing
BOSTON, Aug. 16 — Ayeah Games has closed a round of seed funding provided by a small group of promi…

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7 Ways to Get Small Business Financing

Money is always an issue for small businesses, especially when starting out.  However, the need for cash injections can continue long after you get that first dollar.  Even same industry businesses can differ greatly, but they all have in common the need for money as well as the places they can go to get it.  Here is a look at seven opportunities to get cash for your small business.

Small Business Loan

Probably the most known source for small business cash is the small business loan.  This most often comes from a bank or the SBA; for startup capital or an expansion.  The lender looking at your proposal needs to feel that you are a good investment and you can help them decide in your favor.  Wherever you go to get the loan, there are several things you will need in order to give your business its best chance to get that loan.

Your business plan will tell the lender about your business and you.  They will see how much planning you have done, your grasp of the industry, and how effective the loan will be.

A good cash flow projection tells the lender not only how you will pay them back, but when.  Your best bet is to show hard, but honest numbers.

Your personal financial statement helps the lender to understand where you are coming from and where exactly your business is at.  After all, you’re tied to your business at the hip.

Bring past business tax returns if you have them.  It will show the lender how your business has done and how you have managed money in the past.

Your credit rating is key for establishing trust.  The lender may be giving money to your business, but they are forming a pact with you.  A credit report will fill in the rest of the details of who they are about to trust with their money.

Microloans

From the SBA, the microloan program may be a perfect fit for your current financial needs.  With a maximum of $35,000, a microloan can be less daunting to acquire, if not a little easier than a small business loan.  The most common use for a microloan is short-term working capital and equipment purchases.  Since most microloans require collateral of some kind, the best use is probably equipment, since the equipment can then be the collateral.

Supplier Credit

While this source of income may not work with all businesses, it is ideal for manufacturers and retailers.  A supplier makes money by you buying their products, but if you can’t first buy their products to make yours, they lose a sale.  If you cannot be billed – net 30 days – or if it may take longer to receive your money, it is possible to work out a deal with your suppliers.  An ideal situation is to procure credit out to sixty days.  If that isn’t possible, maybe they will take a percentage of the sales of the end product on top of the cost of the supplies.  This temporary solution could generate higher interest than a loan, but in some situations, it could be your only choice. 

Angel Investors

Best in times of growth, angel investors can be a boon to help a small business get over the hump to where they need to be.  Angel investor loans fill the space left after you’ve gotten your small business loan and other capital.  Unfortunately, they are few and far between and spending too much time looking for them can be even more detrimental to your business than cash problems.  The best time to look for an angel investor is when you already have growth, you’re approaching the breakeven point, or you’re expanding.  The worst time is when you’re hemorrhaging money.  Take care, you still have your business to run.  Plan to spend four to six months looking for an angel investor, but use only a quarter of your time.  Like getting a small business loan, be ready with all that proof that you are worthy of an angel’s blessing.

Credit Cards

It’s a source of quick, red-tape free cash, but credit card cash advances can eventually kill your business if you’re not careful.  Always keep in mind the high interest charges when you are looking at credit cards as a cash source.  Use them, but only for quick-turnaround, time-sensitive, and/or small scale solutions.  Treat credit card advances like you would a fire; it’s great for quick warm ups, but really hurts if you leave your hand in there too long.

Home Equity Loans

Like credit card advances, a home equity loan for your business is a personal risk solution.  They are more attractive however, because of their lower interest rates.  The catch is that if things go south, you lose your home.  Depending on how personally invested you are in your business, this may not be such a different outcome from credit card advances, or even small business loans if calamity strikes.  The main thing to remember when considering the bad side of a home equity loan is that due to consumer protection laws, it’s a much longer process to seize your house than it is from a normal bank loan. 

Family or Friends

Nothing ruins a friendship or splits a family faster than money problems.  When you are considering approaching the people you are closest to, you must know the best way to handle the situation, as well as the potential pitfalls.  Some common relationship killers due to business loans is the recipient squanders the money, doesn’t use the money as indicated, doesn’t pay the money back, or doesn’t pay it back in a timely or agreed upon manner.  If you can avoid those situations, you’re way ahead of the game.  The best course for loans with friends and family is to handle it as professionally as a bank loan, or even more so.  Make sure there is a formal agreement with signed paperwork stipulating how much is to be loaned, collateral, interest rate, how it is to be repaid, and what happens if it cannot be repaid.  If you spell out everything on paper, there is no room for disaster due to misunderstandings.  Remember always:  these people trust and believe in you… don’t make them regret it!

Business Finance and Working Capital Financing Changes

As business owners develop their small business loan plans for future financing and refinancing throughout the United States, there is an increasing awareness that there have been significant business finance changes that cannot be ignored. Some of these measures are likely to end up being permanent, and even the temporary commercial mortgage loan and working capital loan changes are expected to be in place for an extended time due to the severity of the current financial climate.

The net result from business finance changes has been a reduction in commercial lenders as well as stricter standards for acquiring commercial loans and commercial mortgages. Unfortunately there has also been no shortage of misinformation about the availability of commercial funding.

A significant reduction in business lending activity overall is perhaps the most dramatic change. This has been due to several events occurring almost simultaneously. Several major commercial lenders have gone out of business altogether. Even though they have continued consumer lending, many banks have stopped commercial finance lending. Numerous business lenders have enacted stricter standards for the commercial financing transactions they are still willing to consider.

It remains to be seen how many changes will be permanent or temporary. But from a practical perspective, commercial borrowers are left with no choice but to adapt to the changing business finance environment. Business owners must be prepared to operate within a more complicated climate for commercial mortgage loans and small business loans regardless of how long the changes might be kept in place.

What should borrowers do about this? A primary option that business owners should explore involves looking beyond their local market area for help with commercial loans. A commercial financing expert operating throughout the United States should be helpful in improving upon this situation.

In addition to fewer business lenders to choose from, there are two other significant changes which must be anticipated by business owners before seeking new commercial loans. First, commercial lenders are increasingly demanding more collateral for virtually all business finance funding. Second, most lenders have cancelled or are about to eliminate unsecured lines of credit (usually called working capital loans) for many businesses.

Considering a business cash advance program based on future credit card processing transactions is likely to be an effective commercial financing strategy for overcoming the combined obstacles of more collateral, reduced unsecured credit lines and fewer lenders. This is proving to be one of the few sources of business funding that has not been adversely impacted by recent events. It will be productive to discuss the potential with a business finance expert who can provide advice about small business financing solutions including business cash advances and other financial options.

It is increasingly obvious that many banks will continue to modify their business lending programs in response to changing conditions. This means that another key change issue for working capital financing and commercial mortgages is the likelihood that more changes will be forthcoming in the near future.

To adequately prepare for future commercial finance changes that might (or might not) occur is a daunting task for a business owner. A commercial financing expert familiar with Plan B contingency financing for small business loans will prove to be a valuable resource for any borrower wanting to seriously deal with both current and future changes impacting the financial health of their business. By having a candid conversation with a commercial loan expert, business owners should be more capable of implementing an appropriate strategy for the vast changes which have recently occurred or are about to become effective for most business financing and working capital finance funding.

Financing Your Small Business

If there were only two reasons for a business to fail they would be poor financing and poor management or planning. You can’t over-emphasize the importance of financing your business. Financing the business is not a one time activity as some might think. It is necessary whenever the need arises such as when expanding, modernizing etc. At this stage you need to understand the importance of exercising extreme caution and plan the utilization of capital. A wrong decision here can haunt your for the life of your business.

Are You Sure You Want To Raise External Funds?

For start-ups, it’s understandable that you need to raise capital through loans. But what about expansions and upgrades? Make sure that external financing is an absolute must before you apply. It is critical that you organize your finances at transitional stages but only after you make sure that you can’t do it yourself, either permanently or for some time. Equally important are the criteria of risk, the cost of not financing and how well it contributes to specific and overall goals of the company.

FINANCING TYPES

Equity Financing: Equity financing involves selling off of your shares (mostly partially) in return for cash and giving away that portion of ownership and rights to profits. Equity financing can be sought from private investors or venture capitalists. This brings about proper capitalization opening access to debt financing. Equity finance doesn’t need to be returned like loans unless your partner wants to withdraw.

Debt Financing: Debt financing is loan financing against some kind of guarantee of repayment. The guarantee can be collateral, a personal guarantee or a promise. Lenders restrict the use of debt finance to inventory, equipment or real estate. You need to properly structure the debt and the rule of thumb for doing so is giving long term debt for fixed asset loans and short term for working capital. The reason is that fixed assets generate cash flow over their lifetimes and have the benefit of lower interest rates as opposed to working capital loans.

Sources of Finance:

You can choose finance sources depending on your circumstances and the amount required.

1. Family and Friends: Small and short-term working capital requirements can be financed quickly through your own resources or through family and friends. The benefit here is the absence of the interest component (mostly.) This method of raising finances is handy even in early stages of business. You should be mindful, though, that disputes over money are the main reason that close relationships turn sour.

2. US Small Business Administration: This is the most prominent source for debt financing. The SBA doesn’t lend money directly but organizes and guarantees loans through various lenders and sources under its umbrella. Local governments, banks, private lenders, etc. disburse loans immediately to businesses approved by the SBA. SBA loans are available for various business purposes and at the lowest interest rates available.

3. Venture capital: Raising venture capital is organizing financing through selling shares whose value equals the finance you require. Essentially this means selling a portion of the ownership and control rights. It is essential that a proper valuation of your business’s worth is made before the deal is done.

Financing a business shouldn’t be hard provided you have established your credentials as a good manager, have collateral/assets, a convincing cash flow statement, genuine need, a proven track record, good credit history and a robust plan. This should not just save your business from collapsing but also allows it to grow and succeed.

Business Financing without Banks Update

While the original thought for “business loans without banks” could be explained as “this is something that most commercial borrowers should take a look at”, the updated advice is “all business owners will need to do this sooner or later”. There are a number of earlier reports with strong suggestions to pursue business finance services that do not involve a traditional bank starting about five years ago. There are now new critical factors that have entered the scene, and the old reasons for this business financing perspective are still valid as well.

Wanting to find commercial loans without involving banks must certainly be an outgrowth of how unpopular banks have become in the current distressed economy. Thomas Jefferson is credited as the source of an early observation that seems to be more relevant than ever today (“Banking establishments are more dangerous than standing armies”), especially when viewed in combination with reeling economic conditions. In the contemporary setting, banks have undergone many structural changes that have nurtured a desire to leave bank relationships on hold.

Because of specific legal restrictions, banks cannot file for bankruptcy in the way that General Motors did but banks have still changed just as dramatically as if they had. Except in paid advertising, it has become even more rare for either businesses or individuals to speak positively about their bank, but many of us still have warm feelings about earlier banking days. The stories about giving toasters away have unfortunately been replaced by foreclosure and credit card abuses.

Inadequate external controls do seem to be a problem when banks are allowed to mismanage financial derivatives, and this has turned out to be an ideal illustration of banking in its darkest hour. While it is apparent that many politicians and bankers feel that the public does not deserve to ever know the real truth, more experts have come forward to talk about what a close call it really was (and most of these individuals also emphasize that we are not out of the woods yet). Perhaps Thomas Jefferson really did know what he was talking about when he observed how dangerous banks can be.

While there are more examples than we have room to talk about in a short article such as this, small business owners usually have two major reasons to avoid banks for their business loans. One is looking backward at how banks have performed and deciding that they deserve better. As one example, most commercial borrowers are aware that bailouts funded by taxpayers have not resulted in a normal level of small business financing.

With the second reason, just as nobody will knowingly go on a cruise ship if they are told by someone they trust that it is likely to sink, the increasing number of bank failures should serve as a cautionary signal to commercial borrowers. This concern is compounded when small business owners realize that very few of the still operational banks are consistently providing small business loans. If their bank is not up to the fairly normal task of offering business financing to them when they need it, a prudent borrower must be prepared to take their business elsewhere.

A clever approach to marketing the concept of business loans without banks is generally built upon a variation of the good cop and bad cop by merely comparing a “good” lender to the “bad” banks. To ensure that the main point (avoiding banks) is not overlooked, some lenders are using business financing slogans like “Think outside the bank”. Whether or not the advertising approach is convincing to small business owners, the ability to obtain commercial loans without bank involvement can help small businesses to prosper both with and without banks.

EU funding – an alternative source of financing in Romania

EU funding – an alternative source of financing in Romania
As the recession in Romania continues without any certainty as to its duration and conventional sources of funding remain hesitant to provide financing, businesses are increasingly anxious to find alternative sources of money. With internal customary financial resources mostly scarce and bank financing in short supply and often impossible to obtain, it is frequently a necessity for a company to …

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