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Business Financing and Solutions that Work
If we cannot procure your funds, then the chances are slim. Todays market is very complexed, does your business need working capital, venture capital, if your cash flow is limited, contact us. Let our knowledgeable account executives provide your business with a variety of commercial financing options. FES deals with all loan vehicles, Commercial Finance, Leasing, Construction Loans, Real Estate Development loans for all types of commercial properties and more. With Financial Enterprise Services, every one of our loan packages are customized by an experienced account executive. If you don't know the types of documentation required for a loan submission, please see loan package. We have a number of additional and valuable services that are offered for your business. If you have a package that you want FES to review and process, please send to us and you can be confident your package is in good hands. Once we receive your package, we can advise you accordingly. Conserve working capital in most situations, lease if you can, call us for all your leasing requirements.
You Get Immediate Assistance With Your Financing Needs
Working Capital - Working Capital Loans can be obtained and used for most business purposes including:
Commercial Finance - There is a wide selection of Commercial finance which includes: back to top
Commercial Mortgages - There is a wide variety of commercial mortgages available for your business. To help select the best options which include: • Shopping Centers, ground leases, industrial buildings.
Equipment Finance - For most businesses now, leasing your equipment positions your business than purchasing outright: back to top
Equity Investments - are for companies with: $20 million in gross revenue potential Large National or International market potential Management teams with successful track records.
Small Business Loans - SBA loans are is any source of debt financing that is utilized in the operation of a business entity. back to top Common types of small business loans come from: Personal lines of credit, term loans, credit cards, residential second and third mortgages, and personal asset based loans. SBA's take many different forms, focusing on some combination of assets, cash flow, management, credit rating, and business and personal covenants. Reasons to seek a Business Loan directly first and Benefits - It will be easier to administrate, as it will only flow through your business accounts and there will be no bookeeping confusion with your personal record keeping • You are building your business credit rating through acquiring and timely repayment of a small business loan • A small business loan can be secured by your business assets, leaving the borrowing leverage of your personal assets for other purposes including contingencies for your business • There are situations where business assets and cashflow are the only forms of security taken, which eliminates personal risk • For established businesses, many will need to leverage both their business assets and their personal assets to get the amount of money required, so focusing on the harder to find small business loan sources first usually makes the most sense. Sources for Small Business Startup Loans which include basic categories: Personal Assets • Friends and Family • Credit Cards and Personal Lines of Credit • Commercial Lending Institutions • Government Loans, Grants and Subsides • Supplier Credit • Local Economic Development Funds • Leasing • Angel Investors • Venture Capital. There is additional sources of SBA financing options available if you meet the qualifications.
Micro Loans - The maximum term micro loan is 6 years with each lender having their own lending and credit requirements. However all micro loans require some type of collateral and the personal guarantee of the business owner. Micro loans normally require that small business owners applying for financing must fulfill training and business planning requirements before a loan application is accepted. A micro loan can have many different uses including: working capital • inventory supplies • furniture • fixtures • machinery • equipment. Micro loans are relatively easy to obtain compared to traditional bank loans. There may be a problem if you are not located near one lenders since they tend only to distribute in their own communities. Account Receivable Factoring - Invoice discounting, or factoring, enables a company to get immediate cash by selling one or more of its current receivables for the invoice amount less a small discount. Factoring is not a loan, there is no debt incurred, it's simply an advance of your own money that is owed to your business from your customers with a discount. Can be the best solution for your immediate need for operating capital. Who can benefit from this form of financing - Small to medium-sized manufacturing, wholesale and service businesses that do business with large companies and governments. What if our company already uses a bank - Factoring can be used in conjunction with your present bank financing. Does a company have to sell all of its invoices - No, a company is never required to sell all of its receivables. You sell only as much or as little as you like, or need. After invoices are submitted, when are funds advanced - Funds are advanced within 24-48 hours after verification of the invoice. Can invoices from outside Canada be purchased - Yes invoices from outside Canada can be purchased. Can new businesses get factoring - Yes, factoring is specifically geared to helping new companies grow. Needs for cash requirements is understood, especially within a new business. Can companies that have lost money use factoring - Yes, this kind of advancing your money can rebuild your profits, get your company financially stable again. A company that has future earnings stalled by current, temporary cash shortages are excellent candidates. You can be confident when you go through our selective factoring companies, that your business will grow through products that are offered. Your cash flow will increase, which will enable you to focus on what's important, growing your business. FES ensures that the factoring companies are reputable, and most of all, your reputation and your client's are protected through security measures of privacy. FES can help you, even though processes are simple, the questions you need to ask the factor can have an impact on your business if you don't have the answers, why have surprises, because not all factoring companies offer the same. There are a few steps before any invoices are purchased, and once your setup, your business has unlimited potential, contact FES. Purchase Order Financing - POF is an excellent method for a business to obtain quick capital. It is a great solution for when cash reserves are low. This happens with many businesses because the suppliers want you to pay upfront with a C.O.D., but your customers want to pay on net 30 or 60 day terms. Cash flow is a common problem for manufacturing companies especially because while the goods are in transit, the invoices are not paid by the buyers. POF frees up your cash for critical business expenses. Another benefit is that it does not show up as a debt for your business when you get this sort of financing. This can allow your business to obtain additional financing. The steps to being ready for purchase order financing are simple. First you get a purchase order from your customer, secondly you need to find a reliable supplier for your products, and lastly place the order with that supplier. This will get you on the track to betting POF. Business Credit Cards - The basics: Before completing those business card applications, it is a good idea to know the rules of the game. Become familiar with all the credit card terminology and know how it affects you/your business. Check out long - term rates and not just introductory rates. Pay attention to hidden fees, annual fees, balance transfer rates, late charges, cash advances and grace periods. Always match your c/c statement to receipts and check for any changes. Understand the Benefits: Save time tracking and reconciling business expenses • Streamline cash advances • Monitor employee spending • Reduce operating expenses • Maximize cash flow • Better manage vendor relationships • 24-hour customer service. There are many advantages to having a business credit card. They are not the best source of capital, but when your business is in a bind they can be a life/business saver. Main drawback is that the business credit card is tied to the owner. Default will become your responsibility personally, but there are some business credit cards that have no personal guarantee like Home Depot, Staples, etc. Sale and Leaseback - This is a unique and effective method for generating capital for your business needs. You use your equipment to get the capital. There are many potential benefits for your business if you choose this option. Businesses that use this as a capital option can recover up to 35% in tax savings. Since your leasing your equipment back the complete monthly payment is 100% tax deductible. Approval for this option is not difficult as there is not additional collateral necessary beside your equipment to get this form of financing. The balance sheet benefit because having assets that you taxes on converted into contingent liabilities may also lower taxes. Since more capital is freed up for the businesses that do a sale and leaseback because the equipment is no longer being financed at a regular bank, nor is it cutting into the lines of credit you have with the banks. You can use the extra lines of credit to expand your business the most effective way possible. There are flexible terms that can fit your budget. The terms can be 36, 48, and 60 months to best match your needs. back to top Merchant Account Advance - Is a relatively new way for merchants to access cash. Merchant account advances are a great way for business owners to get the cash they need quickly. Instead of worrying about large monthly payments, the loan is re payed from a small percentage of each credit card sale the business makes. What is typically needed to qualify - Your business must accept credit cards as a form of payment • You need to be processing a minimum of $2,500/month • You can qualify even with poor personal or business credit. How does the program work - You are advanced up to $100,000 based on your current sales receipts A small percentage is deducted from your on going Visa/MC receipts There are no fixed payments and no fixed term time frame. Asset Based Loan - Asset based loan financing provides short term restructuring of a companies financial situation to facilitate maximum cash flow. It provides a period of recovery time and a financial operating environment where a company can demonstrate how it could perform with a long-term loan in place. This allows a company to demonstrate it is worthy of long term financing. An asset based loan does this by allowing a company to pledge its assets as collateral for a loan. The company still owns its assets, but they can easily be seized if payments are not made to the lender. Advantages when access to conventional financing may not be executed in time to take advantage of the situation. A business may need to 'stretch' the resources available to accomplish a company's objectives and conventional resource will not handle it. This is where an asset based loan becomes the mechanism of opportunity. Qualifying assets include: Real property A/R equipment finished inventory, etc. Some loans are based on a specific asset, while others function as a line of credit secured across a combination of assets. Import/Export Loan - Allows business to go on globally. Import/Export financing exists to enable businesses to expand the markets globally. It provides importers who have orders from customers globally, be backed by a letter of credit, with the necessary financial backing to provide their global supplier with a letter of credit to guarantee payment of goods. There are many reasons for a business to engage in this sort of financing. One big reason is that financing can be arranged to cover 100% of the transaction. This provides the importer with sufficient financial strength to sell larger orders than they would be able to on their own financial strength. Depending on the strength of the buyer, this may be done on open account with the domestic buyer, allowing the buyer to increase their purchasing power. The whole process works because the importer will supply you with basic information on the import company and their customers. You then evaluate the credit worthiness of the customers. For each of the approved customers, the importer will supply copies of purchase orders that are to be filled. A letter of credit is issued to the supplier's bank with the supplier as the beneficiary. Expansion Financing - Is used for companies that are in a position where they need to expand, or want to expand and they need extra capital to do so. If the market conditions are right, it can be a great move for a company to expand. Some businesses growth rate is accelerated requiring expansion financing. Flexible term financing is typically for a variety of business expenses. These include leasehold improvements, hiring additional staff, new and used equipment, construction costs, marketing costs, real estate acquisition, etc. Qualifications: the lender needs to see a detailed plan , this should be a complete business plan that captures the attention of the lender right off with a well written executive summary at the beginning. This is the first thing the lender will see, and will determine whether or not the rest of your loans gets considered. Additional information that should be included is the name and brief resumes of each of the company's key staff including Owner, President, Management, etc. Also include the exact amount of funding needed, and exactly how that money will be allocated and spent. Inventory Loan - Also known as Flooring is the leveraging of inventory using the value of the financed equipment or stock as collateral for the loan. Lenders want to make sure their loans are secure, so this method will improve the chances of getting financed drastically. Inventory financing is a method commonly used when a distributor or reseller needs additional credit and payment terms longer than 30 days in order to maintain a complete stock of inventory for immediate customer availability. Lenders and savvy business people realize that running out of inventory will do nothing, but drive customers away from a business. That is why more and more lenders are willing to allow a business to use their current stock of inventory as collateral for future loans. A benefit of using this sort of loan is the increase credit capacity based on security in financed inventory/equipment. Working capital position for the business is also increased. Another benefit is that is does not count against the customer's credit line. Make sure you have a good plan in place before you speak about an inventory loan for your business. Secured Credit Line - Provides financial flexibility for your business is a form of working capital that all businesses should consider. It is critical for cash flow management because it provides access to a line of credit that can be used anytime a need arises. Your regular business operations will not have to stop while you wait for the cash flow to come in that you need to pay employees, pay for inventory, pay for advertising, and more. A secured credit line gives your business security that funds are available if times get rough for a short period of time. A secured credit line is like a credit card, you are given a limit, your only charged interest on what your business actually uses. You can pay small amounts per month or pay the balance, keep in mind, once you are approved, you will not have to reapply. Bankruptcy Reorganization - Provides potential turnaround financing for your business. This is required for businesses that are facing difficult bankruptcy situations. Often times a management or employee buyout will be the main part of the reorganization. This strategy will save jobs and also give employees the opportunity to work together to turn the company in the right direction. In a bankruptcy reorganization, if the company is unionized will try to raise capital to fund the transaction of the company from the owners who are facing the pending doom of the bankruptcy, non-unionized employees can do the same thing. This is a decision that could benefit, save allot of jobs, keep the economy in the community stable. All this would depend if the employees voted to agree on taking a salary reduction in exchange for becoming part owner of the new company.The reduced wages would increase cash flow. The employees benefit because they have a potential of actually making more money than before because they will all become equal owners and could share 80% of the profits. The additional 20% would go towards the company that helped fun the transaction. This example is a rough idea how the process works, but many elements, mainly the employees vote. Once main factor when a company faces bankruptcy is to find the root cause, which could be wrong products, pricing, competition, executive management. Once all the causes are found, then it's time to remove the cause (s) and insert new personnel or equipment, if the funds are there, then proceed. back to top Acquisition and Development - This type of financing involves a SBA 'Certified Development Company' (CDC), which provides you with a long-term, fixed-rate financing for major fixed assets (land, buildings, etc.). This program contributes to community economic development. The CDC works with commercial lenders to provide another financing option to businesses. Acquisition and development financing is an excellent option for a business that is looking to acquire more land to expand their current operations. The government supports this program because they understand the kind of economic impact a growing business can have on a community. Funding from an A&D program can be used for: Purchasing land and improvements, including existing buildings Grading, street improvements Utilities, parking lots and landscaping Construction of new facilities Modernizing, renovating or converting existing facilities Purchasing long-term machinery and equipment. The loan program cannot be used for: Working capital or inventory, consolidating or repaying debt, refinancing, employee wages, or marketing expenses. This program includes a loan from a commercial lender that covers 50% of the project and a second loan for up to 40% of the project from the CDC that is 100% SBA guaranteed for a combined 90% LTV. Fixed Rate Commercial Mortgage - A fixed rate makes budgeting and planning easier for your business. Fixed rate commercial mortgage products are mortgages that have a fixed interest rate and payment for the full term of the loan. These loans make it easier to budget, especially over the long term, and offer stability across an ever-fluctuating market. It is vital for businesses to know their exact costs each year, and the mortgage rates can be fluctuating on a yearly basis, so a business could easily end up paying higher interest within a few years on their loans. Typical properties include: Multi-family, anchored, un-anchored retail, full and limited service hotels, offices, light-industrial, self-storage, and senior housing. Term: Typically 5 to 20 year maturities. Rate: Interest rates set at spreads usually ranging from 150 to 275 basis points over corresponding Treasuries, depending on property type and underwriting criteria. Loan to Value: Subject to underwriting criteria, generally up to 80% LTV. Construction Loan with take out - A short-term financing of real estate construction followed by long term financing, called a 'take out' loan. This 'take out' loan is issued upon completion of improvements. Construction loans normally work together with take-out loans. For example:The land developer gets a construction loan to build a cluster of homes When all the homes are ready to sell, a buyer gets a take-out loan from a lender to purchase one of the new homes The builder uses part or all of the money from the sale towards paying off the construction loan. Adjustable commercial mortgage - The funding is a real estate loan with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued. With an ARM (Adjustable Rate Mortgage), you might qualify for a larger loan and your ARM could be less expensive than a fixed rate loan over a long period. The benefits of an adjustable commercial mortgage are that you have time periods with fixed interest rates along with opportunities to benefit from lower interest rates if the rates go down. One downside to this is that if your rate is adjusting during periods of higher interest then this could result in higher payments. If you are confident that your income will steadily increase then an adjustable commercial mortgage loan, or ARM, might be beneficial for your business. There are a variety of programs to choose from: Easy in/easy out • Variable/convertible loan • Adjustable rate with a future option to increase loan • Simple interest loans with or without graduated payments. To compare one ARM with another or with a fixed rate mortgage, you need to know about indexes, margins, discounts, cap structures, negative amortization and convertibility. Construction Mini - Permanent - Used for income producing properties. This particular method of financing is used primely for income producing projects that need to establish an operating history prior to applying for long-term, permanent financing. They are usually applicable to: Shopping centers • Office buildings • Industrial properties • Large apartment complexes. Funds from a construction mini perm loan are typically secured during the project construction phase and last through the rental stabilization period. Mini perm loans usually carry a term length of 3 to 5 years and, as a result, they are always a short-term financing solution. The loan matures with a balloon payment at the end of the term. back to top Real Estate Sale Leaseback - RESL financing allows your business to get instant access to working capital while saving money on taxes at the same time. your business would sell its commercial property for regular fair market value and then immediately leaseback the property. Your business gets the equity because you will get 100% of the full market value at the time of sale. That equity can be invested into your business. With a RESL you can improve the balance sheet as well. you also save money on taxes because the lease enables you to write off a good portion of the monthly payments. The other benefit to this sort of transaction is that you get lower monthly payments as well giving you even more capital to work with. Real estate purchase loan - Are funds typically business loans that are collateralized with commercial real estate. Loans to expand or improve your existing business and loans to refinance existing debt. Both conventional and government guaranteed loans are available. Financing can be secured for virtually any kind of business, including but not limited to: Motels • Apartments • Shopping centers • Retail stores • Office buildings • Automobile dealerships • Owner occupied buildings • Manufacturing facilities • Health care facilities and more. Wraparound Mortgage - A mortgage also known as an all inclusive trust deed. This is a creative way to allow you to purchase property without having to qualify for a loan or to pay closing costs. This could be used when attempting to purchase commercial property without running the risk of being turned down for a large business loan. The process of obtaining the property is also expedited because the property does not have to go through a typical lender. It allows you to obtain property to conduct business in while you work to build your business credit. Growing the business credit will allow you to qualify for larger business loans. If a seller still owes money on a particular piece of property that you want to buy, they would charge you the monthly payment left on the mortgage, plus an extra monthly payment to cover the selling price. The seller chooses the property's resale price. A wraparound mortgage benefits the seller because they earn money on the interest payment each month because the seller would charge a higher interest rate to you, the buyer. When considering a wraparound mortgage it is important to know that some states do not allow them. You will need to check that out before proceeding with one. Record keeping can be extremely complex, and you will need to get legal advice to make sure you are documenting everything properly. Make sure the seller also notifies the lender before proceeding because the lender can make the loan due in full if they find out, and unless you can come up with total due, your in trouble. Participating Mortgage - This type is a creative business financing alternative. Participating mortgage financing is a unique alternative for obtaining the capital your business needs. It is a loan which contains clauses and conditions under which the lender participates, or shares in the revenues of the property. The level of participation may be calculated from the gross receipts, net operating income, net income or net cash flows of the property. A participating mortgage gives a lender more incentive to give the loan if they lend to a business with good potential. Just like with a more standard mortgage loan the lender will need a good plan to verify the business model. They want to make sure you know a lot about your industry so they can see where the income will come from. Another commonly used name for these commercial mortgage loans is 'kickers'. They provide the following: The lender with an effective tool to spread, and this reduce risk The lender with additional incentive to make your loan The lender with a more flexible means of structuring your loan The business with another way to obtain financing. Second Mortgage - Normally used in conjunction with a new first loan. Typically the second mortgage will have a term of no less than 5 years with interest only payments. While second mortgages can be critical in some situations , you must carefully consider your ability to service both loans. There are many clear advantages to this type of creative financing. The most frequent use is a second mortgage that reduces the LTV (loan to value) of the first loan in order to allow you to more easily qualify for the loan. An example would be where the primary lender (first mortgage holder will only lend 70% LTV and you only have a 20% down payment. A second mortgage can be used to make up the difference. There are a variety of options available to you such as: interest only payments, annual payments, exit fees, etc. that will keep your immediate payments down and defer the costs of the second mortgage. The idea is to give the property time to appreciate and thereby allow you to refinance and consolidate both the first and second mortgages at a later date at a then lower LTV. Joint venture financing for commercial property - JVF is a means of structuring a mortgage in order to help you, the client, maximize cash flow potential. How, buy 'teaming' you with a lender as an investor. Similar to a partnership in that it must be created by agreement between the parties to share in the losses and profits of the venture. It is unlike a partnership in that the venture is for one specific project only, rather than for a continuing business relationship. In this case, the joint venture concerns commercial real estate and the lender-borrower relationship. Borrowers do not always start out looking for partners, but sometimes recognize the value of sharing equity over 'straight' debt-financing. Structured joint-venture financing can be complicated and is not appropriate for all projects. Interim Loan - Is a short term financing option for your business. Interim loan financing is an excellent option for your business if you are seeking to purchase commercial real estate, or if you are in the construction phase of building new property. These loans allow you to remain in your current location while the new facility is being built. An interim loan is also great for businesses that want to sell their current propriety to upgrade, but they can't afford to miss a good real estate price because they have to wait for their business to sell. The interim loan would give the business the money it needs to acquire the new property, while still maintaining and operating it's business at the present location. This means that a business is not forced to have any downtime during the close and moving process. There is a little flexibility when it comes to the term of these loans. They range from 6 months to 5 years, and the most typical is 3 years. The interest rates most often float over a defined loan index for the term of the loan and adjust or reset at maturity. In some instances the rate can be fixed. The loans are also beneficial to businesses because the monthly payment is very low since they are interest only loans that do not amortize. The lender knows that at the end of the loan term they will get their full money back when a new loan is taken back. There are prepayment penalties involved with an interim loan, but some programs waive the fees if the business getting the loan decides to stick with the same lender on the much larger loan. back to top Equipment Loan - Equipment loan financing through traditional and non-traditional methods rather than leasing can, in some cases, be a more sensible route. Here's why: Low Obsolescence - Obsolescence is when something becomes obsolete due to a shift in technology or a change of needs in an industry. Certain equipment is not as threatened by obsolescence as equipment in industries suck as technology or medical. You would need to determine if, through proper maintenance, your equipment would outlast the cost benefits. Equity/Ownership - Whether it's a conventional term-loan, a line of credit (secured or unsecured) or an asset-based loan, the key factor is ownership. You enjoy the benefits of ownership and the future flexibility to utilize accrued equity to leverage working capital when needed. First - Year Expensing - Purchasing may allow you to deduct up to $25,000 worth of equipment in the year it is purchased (as part of first-year expensing); anything above that amount gets depreciated over several years. with the first-year expense deduction, the 'real cost' of the equipment is greatly reduced. Equipment Leasing - This type of financing is not only an option to consider, but in many cases, the best choice for business financing. After real estate lending, equipment leasing is the largest type of asset based lending and is rapidly on the rise. Today, you can lease almost any type of hard asset that can be utilized and more within your business. Everything from computers, fax machines, office furniture, heavy duty equipment and motor vehicles can be eligible for lease financing. Definitions: Leasing company (Lessor) purchases an asset and provides the asset to the business owner (Lessee) for business use in exchange for lease payments. Some of the main benefits of leasing: Access to Capital - Equipment leasing companies can finance a single asset purchase in many situations where a primary lender would not extend additional capital • ELC can purchase existing business assets which other lenders have no interest in lending against, and provide a lease in return, turning equity into reusable capital • Equipment leasing process can be completed in as a single day for small to mid-size assets • ELC's work close with vendors by providing the vendors with on site programs to accelerate the closing of the sale process • Because of their understanding of the liquidation process, leasing companies tend to be able to finance a larger percentage of the asset purchase in situations that cannot be primarily approved on the strength of personal net worth and credit. Cash flow - Operating leases can potentially be structured to reduce the amount of monthly debt servicing For new asset purchases, the initial cash down payment can be lower for a lease purchase In cases of business downturn, sale and lease back agreements allow business owners to generate the working capital necessary to keep their business operating Operating leases allow the lessee to turn back to the equipment leasing company for disposal or resale, versus having to manage a disposal process where the result and financial impact are unknown operating leases are normally tax deductible, potentially reducing the amount of business tax and the related income tax installment payments. In performing a lease versus buy analysis, you would normally take into consideration things like: Taxation, Cash flow implications • Operating lease versus capital lease • Cost of capital Flexibility. Even with the most rigorous analysis, the decision may be a lease by default as in some circumstances equipment leasing will be the only available option. Municipal equipment leasing is a tax exempt business financing - Municipal equipment leasing is for: State/Provincial/county governments and agencies • City governments and agencies • Other public entities funded by state and local taxes. Municipal equipment leasing is best used when government agencies need: To purchase equipment and there is not room in the current budget • To make an equipment purchase that is too small to justify a bond issue • To purchase equipment but its useful life does not justify long term financing • To purchase equipments but, whether for timing or debt limitations, cannot fund the purchase. Second Round Funding - SRF is working capital for expansions of an already established business that is producing and shipping goods and services. It is for companies that are constantly increasing their accounts receivables and growing their inventory. these funds will more often than not come from a private or angel investor or a venture capitalist. Often times SRF from the investor will be enough to help bolster the balance sheet enough to give a business more leverage as they pursue a loan from a bank. Sometimes banks may not want to invest in some businesses, even in the second round because they may have a risky business model. A risky business model will not turn away many investors seeking a potentially high return on their investments. After a successful launch, many businesses require more funds to develop the marketing plan, hire additional staff, and establish a strategic position within the marketplace. First Round funding - First round funding sources are primarily hands-off investors who will open their Rolodex to aid you with their confidential contact base and open their wallets to invest in your ready-for-market business. Equity Loan - This type is typically an 'investment' in a company that is secured by a certain amount of that company's shares and structured in part or whole, as a loan. Investment banks will provide funds secured by the 'equity' or ownership shares of your company. Companies that receive funding are those in large rapidly growing markets, or in niche markets which are not targeted by major players. Investment Stage - Early and later stage companies with a founder and partial management team with revenue or profits and the need for expansion capital. Size of the Investment - Typically $1-2 million initially with up to $5-10 million over the life of the investment. Duration - Investments typically are for 3-5 years, but sometimes may last longer. Before you approach, the following should be completed: Financial Analysis: Identifying all sources of revenue, assessing likely business costs, determining capital needs and modeling financial projections. Market Research: Consisting of primary and secondary research to determine market size, market growth potential and other relevant factors. Competitive Analysis: Identify relevant competitors and assess their strengths and weaknesses as an aid in determining under served market needs and potential market demand for a new business products and/or services. Business Plan Development: Developing thorough, actionable plans for implementing your mission statement and, subsequently, turning a profit. back to top Later Stage Funding - Are for companies with more than $20 million in gross revenue potential • Large National or International market potential • Management teams with successful track records. Second, third and mezzanine financings are all considered later-stage and funded by venture capital investors and/or, in the case of mezzanine financing, can also include corporations, or strategic investors. As in first-round financings, valuation is a function of the company's development to date relative to similar companies in the industry and relative to the last round of financing. |
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