Custom Funding Programs can be developed to meet the needs of the project. A combination of debt and equity and the many variations of each along with off balance sheet financing can be put together in a customized funding package.
Debt Financing is available for companies needing expansion or acquisition capital of $250,000, or more:
Business loans $250,000 to $150,000,000
Business Real Estate Loans $1,000,000 to $300,000,000
Hard Money (quick turn) Mortgages $500,000 to $20,000,000
Rural Development Loans $1,000,000 to $25,000,000
SBA 7(A) (Start-ups, Acquisitions, Working Capital) $500,000 to $1,000,000
SBA 504 (Acquisition, Expansion, Renovation) $500,000 to $5,000,000
Commercial Construction (2 years max) $1,000,000 to $100,000,000
Sale / Lease Back $1,000,000 to $25,000,000
Bridge Financing $500,000 to $5,000,000
International Financing $10,000,000 to $200,000,000
Sub-Debt Financing: Asset based mezzanine funding. Due to risk, rates are higher than senior debt. Stock options are often included, or are required. Funding available: $300,000 to $10,000,000.
Projects are considered on a case by case basis.
* Generally: Terms up to 20 years. Rates are prime + and comparable to local banks. Basic rules of finance apply: the higher the risk, the higher the interest rate and fees.
* Required from borrowers: Business plan and supporting documents, 20-40% equity, sufficient cash flow to service the debt, track record, collateral, and full disclosure. There are not any application fees from The Project Corporation, but there may be fees from the Lender. Clients are expected to cover the costs of appraisals, evaluations, attorneys, travel, etc.
For established businesses poised for rapid growth and exceptional profits. Investors looking for Niche Markets with unusually high entry barriers and exceptional management teams. Company objectives need to be consistent with the Investor's.
Currently funding request for start-up companies are not being accepted.
Equity Financing: Acquisitions and Expansions $1,000,000 to $300,000,000
Equity Financing and Venture Capital (VC) involves selling an interest in your company. This form of financing will mean relinquishing a portion of the ownership and control of the business to the Investor. How much ownership and control you will need to give up is determined by your specific circumstances.
VC deals are usually more difficult to complete than debt financing. The Client should be prepared for the process to take 9-12 months, if it happens quicker great. The Clients need an exciting product, or business. The management team has to be exceptionally talented. The package submitted has to be complete. The documentation and personal presentation must be able to excite the person you are asking to invest in your business.
Many uniformed Clients are looking for equity type funding with the misconception it is a loan that does not need to be repaid on a monthly basis. Clients want 100% financing, total control of the company and no monthly payments. That is just not realistic. With debt you have a loan that must be repaid and is on your balance as a liability. With an Equity Investor you will give up some ownership and there will be a high return exit strategy for the Investor.
Private Financing is where a business seller takes back a promissory note from the business buyer for all, or a part of the purchase price of the business. The note when used in a business transaction is called a "Business Note." The note is a document signed by the buyer stating the loan amount, the interest rate, along with the time and method of payment. If the transaction also includes real estate, there could be a separate document called a "Mortgage Note."
Cash Flow Financing
This financial tool is neither debt, nor equity financing. It is the purchase of a cash flow stream from a business by a funding source. Cash flow financing usually occurs when a business is growing faster than it can collect it's receivables. When a cash flow stream is sold, the present value of the asset is determined by the Investor. An asset is valued to reflect the original amount along with a risk and reward calculation. Risk is determined by several factors and is greatly influenced by the credit of the Payor, and not the business requesting the financing.
Cash Flow Financing can
include any transaction
where there is a receivable, including:
Annuities Purchase Orders
Commercial Leases Sales Invoices
Equipment Payments Royalties
Benefits of Cash Flow Financing can include:
Flexibility in plans for growth.
Access to cash despite credit rating.
More flexibility in offering terms to Clients.
Greater equity in the business and less debt.
Ongoing monitoring of customer's credit status
Find more information and read articles about business loans and other methods of funding a business.
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