Fund Your Business Without Giving Up Equity

Written By All Video Subscribers on Saturday, November 13, 2010 | 11:01 AM

Fund Your Business Without Giving Up Equity

How to Fund Your Business Without Giving Up Equity:
Although there are many methods to finance and capitalize a company, the financing transaction is usually structured and secured in one of two ways. Either your put up collateral as security or you give up some ownership of your company (equity). Both methods have their benefits and drawbacks. One of the major benefits of using collateral instead of giving up equity is that you retain ownership and control of the business. This can be very important for business owners who want to retain their independence. When you sell equity, the buyers become your new partners - for better or for worse.


Most small and medium sized companies look for financing because they have cash flow problem. Although you can fix these problems by selling equity and recapitalizing the company - it's not always the easiest solution.

One business financing alternative is to get a business loan. Although business loans are a popular tool to finance a company - they can be hard to get. The current lending environment is very difficult and institutions are only extending loans to very low risk ventures. To qualify, most companies need to have strong financial statements, multi year profits, seasoned management, substantial collateral and good growth potential. Few companies meet these criteria, especially small and midsized companies.

If the cash flow problems are caused by slow paying clients - rather than by low sales - invoice financing may be the right solution. Invoice financing is a simple solution that provides a funds advance on your slow paying invoices. It plugs the cash flow gap, providing the money you need to pay suppliers, employees and other business costs. More importantly, it smooths out cash flow, providing predictability and allowing the business owner to focus on other tasks.

Most invoice financing transactions are structured as two advances. The first payment is given to you as soon as you invoice your client. It's usually 80% of the invoice. The second advance, which is 20% less the financing fee, is given once your client actually pays the invoice.
One of the advantages of invoice financing is that is easier to get than other forms of financing. If your business is free of liens and encumbrances and you invoice credit worthy commercial clients, you have a good chance of qualifying.
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8 Differences Between Traditional Businessmen and Entrepreneurs

8 Differences Between Traditional Businessmen and Entrepreneurs

The difference between traditional businessmen and entrepreneurs is not huge - it could be a thin line yet a defining one. If checked deeply, there is a difference between traditional businessmen and entrepreneurs. In this article, we will discuss these differences point-wise.


1. Entrepreneurs love to innovate while traditional business owners love to stick to tested services and solutions.

2. Entrepreneurs are on a look out to create something new-a product, solution, strategy, application, service or even a whole new concept. Whereas, businessmen stick to traditionally popular products and services and try to recycle it.

3. Entrepreneurs tend to pick up niches that are not over-crowded. In fact, they create new niche and market segments. Traditional businessmen, as the name suggest, like to stick to crowded markets.

4. Entrepreneurs have to brace with initial blockage in terms of finance, support and resources. Traditional businessmen often enjoy support because there is not much of speculation over the feasibility of their venture.

5. Entrepreneurs tend to tread a risky path, though the rewards are also pretty rich.

6. Entrepreneurs could innovate at any scale. At the same time, they may face problems in scaling up.

7. More often than not, entrepreneurs need a team to support their idea and take their venture to the next stage. This is where collaboration and networking comes into play. Entrepreneurs do and need to use social media as a potent networking medium whereby they connect with fellow entrepreneurs, investors, target audience and auxiliary service providers.

8. Entrepreneurs have to face failures at many stages. In fact, due to poor execution of their ideas, entrepreneurs' failure percentage is pretty high. Though there are lot of executive and management course that tend to teach how to be a successful entrepreneur, the percentage has not come down as desired in India or in the entire world.
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Enjoy the cold season and stay warm my friends.These photos are done by Akos Major, a 35 year old amateur photographer from Budapest, Hungary.That's why I'd like to show you some good winterscapes photography that will give you the chills just by looking at it.














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Some movies require actors and actresses to wear costumes or to apply basic makeup to take on a specific role, or even to change their hair color or lose weight. We have seen celebrities shed off their glamorous skin and almost magically transform to give life to some of cinema's most unforgettable characters. Here is collection of some amazing celebrity transformations that rocked Hollywood in past few years.














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Massage Techniques : How to Massage Away a Headache

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To massage away a headache, perform circular motions with the fingers and thumbs around the ear tissue. Massage the head and scalp to relieve a headache with tips from a massage therapist in this free video on massage techniques.

Expert: Sundae Thomas

Bio: Sundae Thomas has been a massage therapist for almost a decade. She is the owner of Natural Sundae in Land of Lakes, Fla.

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