CEO Clubs
of America




Financing Tips




Unless you're independently wealthy, financing your business undefined whether you're looking to start a business or expand your current one undefined is a key consideration.  Majority vast majority of new small businesses are funded with debt financial institutions.  But there other options you should consider before you sing on the dotted line.


If you go the traditional financing will want you will want a experienced business experienced business attorney to carefully review the terms of your financing as well as the documents to make sure they treat you fairly and to help you think through the feasibility of the proposed financing. We’ve compiled a comprehensive repository of resources that cover all aspects of financing your business. Each of these links is a portal to even more information. Everything you will ever want to know about raising capital to start your own business or expand an existing business. This site provides guides that cover the following financing topics


Royalty Financing


Royalty financing is an advance against future product or service sales. The advance is paid back by diverting a percentage of the product or service sales to the investor who issued the advance. Most appropriate for established companies that have a product or service or emerging companies about to launch a product with high gross and net Investors Working Learn more.


Angel Investors


Working with angel investors means acquiring venture capital from individual investors. These individuals look for companies that exhibit high-growth prospects, have a synergy with their own business or compete in an industry in which they have succeeded. Most appropriate for early-stage companies with no revenues or established companies with sales and earnings.
 Learn more.


401(k) Financing


If an employee leaves his employer to start a new business, his or her 401(k) can be used to invest in, or even to finance, the new venture. Appropriate for any company at any stage of development. 
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Institutional Venture Capital

This type of funding includes venture capital from professionally managed funds that have between $25 million and $1 billion to invest in emerging growth companies. Most appropriate for high-growth companies that are capable of reaching at least $25 million in sales in five years. Learn more.


Startup Financing

Sometimes to raise money to start a business, entrepreneurs will sell assets, borrow against their home, borrow against insurance policies, secure financing from family members, etc. Learn more.


Equipment Leasing

Equipment leasing is basically a loan in which the lender buys and owns equipment and then “rents” it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value (or a fixed or predetermined amount), continue leasing, lease new equipment or return it. Appropriate for any business at any stage of development. Learn more.


Microloans


The Microloan Program was developed by the SBA in 1992 to increase the availability of very small loans to small-business borrowers. It achieved permanent status in 1997. The program uses nonprofit intermediaries to make loans to new and existing borrowers, and since 1992 has accounted for more than 12,500 loans totaling more than $112 million. These funds may be used for working capital, inventory, supplies, furniture, fixtures, machinery and equipment. 
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Bank-Term Loans


Term loans are the basic vanilla commercial loan. They typically carry fixed interest rates, and monthly or quarterly repayment schedules and include a set maturity date. Bankers tend to classify term loans into intermediate-term loans or long-term loans. Most appropriate for established small businesses that can leverage sound financial statements and substantial down payments to minimize monthly payments and total loan costs. 
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Private Loan Guarantees


A guarantee of payment that stands behind an early-stage company and enables it to take out a loan from a bank. Conceptually, private guarantees play the same role as an SBA loan guarantee. Most appropriate for early stage companies that within a year will turn the corner toward profitability, or commence product sales. 
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