5 Ways to Raise Capital

Like the great Paul Simon song, “50 ways to leave your lover”, there are probably at least 50 ways to raise capital. As a writer, not a crooner, I will endeavor to describe 5 ways to raise capital.
1. Asset based financing - bank loans and receivable loans fall under this heading. There is an abundance of prime and sub prime lenders in this market broken down by loan size. As banks retrenched after the financial crisis of 2008, many asset based lenders came into play. It is not hard to find these lenders online. Asset based lenders are reliable because there is usually one for every possible scenario. There are banks for larger companies with pristine balance sheets. There are collateral based lenders for companies who are no longer bankable and going through a turnaround. Factors are usually very expensive. The more risk the lender assumes, the less they usually look at the health of the company’s balance sheet and more they look at the quality of the collateral. You need clean financial statements and a description of your business to be able to start the conversation with these lenders. Of the 5 ways to raise capital, this is a straightforward option.
2. Mezzanine financing - there is a plethora of mezzanine lenders in the market seeking to lend directly to companies. Their capital is relatively expensive when compared to bank loan rates, but inexpensive compared to the return requirements of an investor. The criteria is not asset based, but cash flow based. They are focused on ensuring the company is generating enough cash flow to pay back their principal. Companies that can use the money to generate high returns are the best candidates for mezzanine financing. Most companies that get mezzanine financing have the ability to double the size of their company through buying another company or accelerating their own growth. This large growth drives down the cost of the money. To engage with mezzanine lenders, you should have a mezzanine financing advisor on your side.
3. Growth Equity Raise - growth equity is designed to help you accelerate your growth. It is money that ends up owning a small percentage of your company. With growth equity, you are getting an investor who will be involved in the board level decision making. Growth equity investors usually bring connections and expertise to the company in addition to their money. Of the 5 ways to raise capital, this takes a lot of work and requires outside assistance from a corporate finance advisor.
4. Crowdfunding - This option is the newest of the 5 ways to raise capital. Like all things internet, this option holds great promise but also many pitfalls. With crowdfunding, if you have a hot and sexy concept, you may be successful. The amount of capital success is usually directly related to the amount of blue sky in your pitch. Most companies that have operating histories or that are non tech and mundane are not going to get much traction through crowd funding. It’s a very impersonal way to raise capital and it’s hard to really know who you are getting in bed with from an investor standpoint.
5. SBA loans - the Small Business Administration has changed its programs with respect to loan size and other qualifying criteria. Historically, you had to be a certain size to qualify for a loan. Banks appear more eager than ever to promote SBA loans to smaller, companies. This makes this option an up and comer of the 5 ways to raise capital. Many banks are originating these loans for syndication on the open market. There are many local SBA origination firms on line that you can tap for advice. Many of them even will help you through the qualifying criteria. There are loan bundlers to stay away from in this like every market. You should do your homework and have some conversations with reputable firms in this area. If you qualify, the SBA loan will be a low rate.

Reliable Advice For Those In The Affiliate Marketing Field

Affiliate marketing can be a lot of work and there are so many ways that someone can either, improve upon the program or change the program entirely. So whether you need more techniques to help promote your site or if you're looking for a new program to promote your site, take a look at the tips below.
Investing
Investing in a personal organizer is a great tip to use if you want to be a successful affiliate marketer. Even if you're only using the organization features on your cell phone, you should make a note of your tasks, your schedules, your meetings, and other important information you will need to know about at any given moment.
Beginning your affiliate marketing career with pay-per-click (PPC) programs is a wise move. By investing only in keyword bidding at PPC search engines and selecting your partner merchants carefully, you can build up a modest income without laying out much up-front investment. Then you can use PPC profits to pay for setting up a website.
Always check the reputation of the companies you choose to do business with. You may hear stories about companies not paying the affiliate commission and getting by with it. You want to make sure you get what you are paying for and that's why it's best to check the company out before investing.
Initially you should use free resources to advertise all your affiliate products but when you start generating money, you should strongly consider investing in paid advertising in order to get more traffic on your site. Purchasing your own domain name is an excellent way to get more people onto your page.
Affiliate marketing can be a very effective tool to have in your arsenal for promoting your business. You may already have a successful business, but you may want to know how to promote it further or you may want to learn something new for future marketing plans. No matter your reasons, hopefully the tips above have given you some ideas.
For me, i prefer having passive income, looking at stocks as businesses, creating a portfolio and enjoying dividends etc. I also like the idea that when I invest in a good business, everyone wins âEUR" from the customers, to the business to me, the shareholder. I personally, with all due respect, cannot understand how short-term trading creates value. As an investor, what I provide is funds to a business that wants to expand to reach more customers. And if it is a good business, providing good value, I can to help more people. (I encourage to think the same. So think twice abut what you are supporting when you invest in Tobacco, Gambling, Pornography industry). Because of your funding, your children or grandchildren may become a customer (i understand it is a bit far fetched but do have principles and make a stand).