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Private Equity Fund:Capital Funding Sources for Small Businesses PDF  | Print |  E-mail
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Written by Ruth McCrackin   
Thursday, 20 January 2011 15:16

 

If your business needs cash to move forward, you may have to resort to some alternate-ideal financing options or face the possibility of having no business at all. The methods listed below on capital funding may not be what your accountant would advise you to do, but they will raise cash for you if you are in a business need.

Sell Your Assets

Lots of small business owners overlook the sale of assets as a way to raise capital funding for cash quickly. While it may not be ideal to sell your car and lease one that will cost you more in the long run, it may be the only way your business will survive. Private equity fund resources is away to release capital to your company immediately.

Borrow Against the Cash Value of Your Life Insurance or Factor Receivables

You can only borrow against a whole life policy, not term insurance. If you have had your whole life policy for three years or more, you probably have some cash value in it and many companies will let you borrow up to 90 percent of the value of your policy. As long as you continue to pay premiums your policy will remain intact. Loans against the cash value of your life insurance have interest, of course, but the rate will be more favorable than you would get if you took cash advances on your credit card -- a small business bootstrapping favorite. The downside: if you die during the time you have a loan on your policy, the benefits will be dramatically reduced.

Factor Receivables

When you factor, you sell your receivables to a third party -- a factor -- for cash. The factor advances you between 50 and 90 percent of the value of your receivables and then collects the money from your creditors. When the full amount is collected, the factor gives you the remaining 10 to 50 percent, less fees. Fees are in the range of 1-5 percent of the amount financed and range according to volume of receivables.

To find a factor:

Outsource Your Financing

Financial headhunters find investors for entrepreneurs for a cut of the capital they bring in. Prime Bay Funding Group will do all the hard work for you while you wait on collecting cash flow now to expand your business goals.


Fill out your free assessment today be click here for more info


Written on Thursday, 20 January 2011 15:16 by Administrator

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Comments  

 
0 #7 Tiffany 2011-01-21 11:43
Very interesting suggestion on raising capital. Just last week I got the breakdown on whole life vs term life insurance. I like the first option sell your stuff. This might help get you out of debt as well.
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0 #6 Ruth Mccrackin 2011-01-21 03:16
Thanks for commenting and sharing...love to hear your feedback!
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0 #5 Carol Giambri 2011-01-21 00:06
Thanks for posting very vital and informative information. Much appreciated.

Carol
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0 #4 Jaime 2011-01-20 22:54
You have shared a lot of great information, Ruth.
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0 #3 LaTalya 2011-01-20 20:39
Thank you Ruth for the alternative options! Really good stuff~
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0 #2 Elvie 2011-01-20 18:36
I hope I never get to this state, but with the economy instability, we should be prepared. Excellent information for a Business Minded Entrepreneur.
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0 #1 Susan McKenzie 2011-01-20 16:09
Great ideas for alternative funding to capitalize small businesses!
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