If CEOs have their minds on venture capital, they better come up with a contingency plan--and fast. Michelle Meyers, cnet news associate editor for media, entertainment and politics, reveals that venture capitalists saw a 50 percent decline in investments over a single quarter. The drop from $7.78 billion to $3.90 billion demonstrated just how little interest there is in backing US companies.
High-risk EU Equity Funding Lures Outside Interest
If companies could finance themselves, high-risk funding wouldn’t even exist. Instead, business owners count on capital for start-up and expansion from such sources as business angels, venture capital, and stock markets that specialize in high growth companies. In the EU, the European Commission is strategizing to improve equity investments. The EUbusiness blog states that business funding from angel investors shows the most promise of the three types.
Business Funding Options to Consider
If you’re taking inventory of your business’ credit worthiness, allBusiness lists these small business loans options worth considering:
- Small Business Loans. Such as banks, credit unions, the U.S. Small Business Association, or angel investors
- Merchant Cash Advance. Based on potential credit card sales and typically requires a merchant agreement
- Unsecured Business Loans. Not secured against the borrowers assets and can have double-digit APRs
Considering how much money you need, how it will be spent, how long it will take to be repaid and “Plan B” are all indicators of the business funding type that will fit your organization.
1 comment:
As a general rule, look inside the business for expansion financing. There are often hidden sources of cash that you can acquire by tightening the belt or renegotiating B2B contracts.
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