Debt or Equity?

In a perfect world, debt financing would be available with reasonable rates and terms for all projects. During these economic times, we must redefine what the most realistic scenario is, even though imperfect, and clients should start with debt expectations This, of course, is a “blanket statement” and all businesses are very different. Small to mid-sized businesses, typically not pure startups, with some real capital invested and at least one Principal with good credit do have alternative options, which include SBA, SBA guaranteed programs ?? and with other lenders. Collateral still makes a huge difference in opening these other doors.

There are always exceptions to the rule, but typically equity financing with angel investors, sometimes strategic partners, institutions or VC firms, let alone through a potential Private Placement Memo (PPM) are options for ventures with viable business plans, thorough and detailed market analysis that result in believable forecasting.

When choosing a business plan writer, it is best to first consider a business plan consultant with a team that understands the nuances of funding and prepares custom plans accordingly। Avoid being place in a business plan box, a mistake the majority of entrepreneurs make. Whether you are seeking ??? generic plans almost always have the same result …the wastebasket.

Contact Tim@thebusinessplanconsultants.com for a free consult.