Funding a Business

Financing While Maintaining Equity

When starting a new business you may need start-up funds but lack the money to invest yourself. What are your options, can it be done without losing equity in the company? Start off by thinking about it from the other side. If you had $500,000, what would make you want to give it to you...


The Personal Guarantee for Credit Approval

A personal guarantee (PG) is requested by lenders in order to ensure that they get paid any debt issued to a corporation or LLC. The personal guarantee is signed by an individual typically involved in the business. In most cases it’s one of the owners, officers, or board of directors. The National Association of Credit...


The Four Tiers of Small Business Financing

One of the most important tasks of a small business owner is finding capital for their business. Unfortunately, most business owners are clueless when it comes to finding money, and most self-proclaimed experts they may listen to are equally misguided. The bottom line is you need capital for your business. Your capital needs will change...


Good Debt vs. Bad Debt

I hate debt. I don’t like the feeling of owing anyone money. Though I was repeatedly taught in my youth to avoid debt like the plague, I didn’t listen very well — I was nearly $1m in debt at age 25! Some things are learned the hard way. As much as I dislike debt now,...


Behave Your Way to Obtaining Capital for Your Business

In his book, The Seven Habits of Highly Effective People, Dr. Stephen Covey recounts a conversation with a man who hated attending out-of-town training events. The man explained that his wife calls and hounds him on every detail of the day, whom he dines with, etc., and that he felt imprisoned by it. He also...


Raising Business Capital from People You Know

Asking for business capital from people you know is very different from putting in a loan application at the bank. The good news is that you already have a personal relationship, so chances are they won’t run a credit check or ask you to put up your home as collateral, and may even give you...


Dealing with Rejection by Investors

You’ve developed a plan and submitted it to investors. You’re comfortable with the plan and the submissions process. Several investors have declined. Now what? The investment process works as a filter, sorting business plans, pushing some to the top and others out of the way. This filtering process is a good thing for many entrepreneurs...


Funding a Business from Friends and Family

If I could make a point with budding entrepreneurs, it would be that you should know what money you need and understand that it is at risk. Don’t bet money you can’t afford to lose. I’ll always remember a talk I had with a man who had spent 15 years trying to make his sailboat...


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