Mesa, AZ 85213
Phoenix, AZ 85004
Gunderson, Denton And Peterson Office Locations
View View Gunderson, Denton And Peterson Locations in a larger map
Legal Assistance With A Positive ROI
Finance Options for Your Business
Whether creating, restructuring, or expanding your business, there are several options to finance your business. Among these are four major sources: (1) direct financing through a bank, (2) angel investors and venture capitalists, (3) privately or publicly selling stocks, bonds or investment contracts, and (4) private financing-also known as “hard money lending.” Depending on your immediate and long-term needs and goals, each source provides different advantages and disadvantages. If you are interested in trading, then our global community of traders deliver daily analysis of major market themes and technical structures, and click on Axia Futures homepage for more information. As always, the best source of current laws and information is an attorney familiar with business and finance law, such as our attorneys at Gunderson, Denton & Peterson, PC.
Direct Financing through a Bank
Obtaining financing through a bank is often a positive option to finance your business. Banks provide short-term, mid-term and long-term financing. And then there are websites like https://pikalainaheti.fi that provide loans with just a few taps of your mobile. Do you know about bitcoin? Investing in Bitcoin requires nerves of steel, and also keeping an eye on the latest crypto news, read more news here. The SBA 7(a) term loans is the perfect solution for business owners who need long-term working capital or needs financing to purchase equipment. You can get tron insights at DC Forecasts. Typically, giving up ownership is not required, but these loans may include debt acquisition restrictions and personal guarantees of collateral to ensure repayment. Banks sometime offer flexibility of repayment and early loan termination. The difficulty lies with loan availability and the cost from interest rates charged for fractional shares.
Banks determine costs and availability according to risk. Higher risks require higher interest rates, more restrictions, and more personal guarantees through collateral. Risks are weighed by considering the owner(s) personal and business credit, track record, history and relationship with the bank, assets to back the loan as collateral, education and experience, type of business, and likelihood of success. Small business loans by Sunwise Capital – Funds in 1-2 days may be a solution.
In conjunction with conventional financing sources, you should also consider local and state economic development organizations for subsidized loans and grants. Although these programs may not be available for everyone, if you are able to get them, they can often make the difference between a successful company and one that closes shop or goes bankrupt.
Angel Investors or Venture Capital
Other options to finance your business include angel investors and venture capitalists but you need to make sure to have a personal guarantee. Angel investors and venture capitalists are professional investors who make their money by purchasing ownership interest in a company, building the company up, and then selling it. This may mean selling the business to someone else, or it may take the form of buy-back provisions that give the owner(s) the option to purchase the ownership interest back. Although angel investors and venture capitalists generally do not have long-term ownership in mind, they may require management control and/or limit debt acquisition. This option tends to be more costly than direct loans from a bank. However, it may prove to be more available than a bank loan, and sometimes more beneficial as a result of the lender’s expertise and contacts.
Stocks, Bonds, Investment Contracts from Public and Private Entities
Another option to finance your business is through selling stocks, bonds, or investment contracts to public or private entities, just remember about the importance of supplier risk. Just as it sounds, you are essentially selling ownership interest in the business. Unlike direct bank loans, owner(s) pay dividends to investors rather than interest to the bank. Although there may not be provisions requiring repayment, these investment contracts may include buy-back provisions for the business owner(s). Public offerings can raise considerable amounts of money but are expensive and time consuming. Accordingly, this option is not usually available for smaller, newer businesses. It is important to know that the Securities Exchange Commission (SEC) and Arizona Corporation Commission regulate the sale of stocks, bonds, and investment contracts to public and private entities. Because the laws regarding securities are broad and complicated, it is important to consult with an experienced attorney about disclosure requirements.
Private Financing or Hard Money Lending
Another option to finance your business is through ‘hard money lending.’ Hard money loans are short-term, asset-based loans like the loans in Kansas, frequently requiring real estate or other property as collateral. They are often last-result or immediate-need-based, and are therefore issued with higher interest rates. Because interest rates are high, the loans usually require guarantees using collateral in the form of real estate, personal and/or business assets. Hard money loans have traditionally been mostly unregulated by state or federal laws, and therefore leave little protection to borrowers. Although there are some regulations in some jurisdictions, due to the high interest rates and vulnerability to an owner’s property and assets, hard money borrowers should use a professional real estate attorney to review the loan documents. You could even get assistance from this credit card processing for small business.
When deciding where to derive financing for your business, it is important to consider your short, mid, and long-term needs and goals. Each source provides different advantages, disadvantages, and vulnerabilities. As always, it is best to consult an experienced professional. Attorneys at Gunderson, Denton, & Peterson PC can assist you with current information on financing laws and options so that you can implement the best strategies to ensure the success of your company.
Gunderson, Denton & Peterson, P.C.
1930 N Arboleda #201
Mesa, Arizona 85213
40 N Central Ave #1400
Phoenix, AZ 85004
GDP Business Blog
Should I Hire a Broker To Sell My Business In Arizona?
How to Protect Your Business From Personal Injury Claims & Lawsuits
10 Tips to Keep Your Mesa Business Out of Court
Business With Friends
Deciding on a Business Structure
A Rose by Any Other Name Might Not Smell as Sweet: The Process of Choosing and Protecting a Business Name
Structuring Your Business Sale To Avoid An Unexpected Tax Hit
Eight Questions to Help You Find the Target Market for Your Business
Top Mistakes When Launching A Home-Based Business
How to Plan Your Arizona Business Plan
Business Startups: How to Pitch Your Idea to a Venture Capitalist
Seven Ingredients to Make Your Startup Business a Success
Six Qualities to Look for in a Business Lawyer
Three Steps to Choosing a Name for your New Business
Seven Steps to Developing a Marketing Plan for Your Business
How to Protect Your Intellectual Property
Ways to Failure Proof Your Phoenix Business
How To Convert An LLC To A Corporation In Arizona
Does Your Startup Arizona Business Need a Patent?
Non-Compete Agreements In The Sale Of A Business
Liability of Owners in Various Business Structures
Small Businesses Feeling the Impact of the Government Shutdown
Using a Letter of Intent to Reduce Risk in the Process of Purchasing a Business
What Does it Take to Make a Binding Contract?
Forming a Startup – Important Questions Co-Founders Should Ask First
An Exit Plan for Your Business
General Business Law at Gunderson, Denton & Peterson, P.C.
Introduction to Gunderson, Denton & Peterson, P.C.
How Business Owners Can Minimize The Cost Of Divorce
The Difference Between A Contract That Falls Under The UCC And One That Doesn’t And Why It Is Important To You
Problems with Decision-Making in an LLC
Finance Options for Your Business
Why Should Your Company Not Go Public?
How do I buy an existing business?
How Business Owners can avoid Personal Liability if others attempt to Pierce the Corporate Veil
Arizona Business Law
Arizona Business Lawyers
Link about our Arizona Business Lawyers.
Arizona Collections Law
Arizona Collections Lawyer
This link talks about our collection lawyers in Arizona.
Arizona Employment Law
Arizona Employment Lawyer
This link is about our employment lawyers in Arizona.
Arizona Estate Planning
Arizona Estate Planning Lawyer
This link is about our estate planning lawyers in Mesa Arizona.
- Mesa Estate Planning Attorney
This link talks about our estate planning lawyers in Mesa Arizona.
Arizona Franchise Law
Arizona Franchise Attorney
This link is about our Arizona Franchise Attorneys.
Arizona Immigration Law
Arizona Immigration Attorney
This link is about our immigration attorneys in Mesa Arizona.
- Arizona Visa Lawyer
This link is regarding our Arizona Visa Lawyers.
- EB-5 Immigration Visa
This page talks about EB-5 immigration visas.
- Investor Visa
This page talks about investor visas by our immigration lawyers in Mesa.
- Mesa Arizona Immigration Lawyer
This link is regarding our immigration attorneys in Mesa.
Arizona Litigation Matters
- Arizona litigation lawyers
This link is about our litigation lawyers in Mesa Arizona.
- Mesa Litigation Attorney
This link talks about out litigation lawyer in Mesa Arizona.
Arizona Probate Law
Arizona Probate Lawyers
This link is about our Arizona probate lawyers.
Arizona Real Estate Law
Arizona Real Estate Lawyers
This link is about our real estate lawyers in Mesa Arizona.
- Phoenix Real Estate Lawyer
This link is about our knowledgeable real estate attorneys in Phoenix, Arizona.
Mesa, AZ 85213