A Business sometimes
needs financing outside of what it can generate from daily cash
flow. When this is the case, what choices do business owners have?
Not only are
there a myriad of financial sources, there are almost as many different
potential types of financing. Every business will have different
requirements and needs. Business owners also have different levels
of acceptable risk. While one owner may want to maintain control
of the business without other shareholders, another owner may want
equity investors because the cost of debt may be too expensive.
But there are
other financing methods beyond a straight bank loan or sale of company
shares. There are, to name just a few, securitized loans, account
recievable financing, factoring, forfaits, letters of credit, equipment
and inventory loans and bond financing. There are also, to name
just a few, private placements, public placements, preferred stock
finance structures, convertible securities and warrants and options.
While some financing methods will be available to a particular business,
other methods will not be available.
Financing the
business can take an owner in many directions, requires detailed
analysis and requires an understanding of the potential risks and
rewards.
Take an opportunity
to review the financing area of Cooke's Law.
If you have
any questions or want to talk with Mr. Cooke in more detail about
the legal aspects of your financing opportunities, you may reach
him at (312) 497-9002 or at "gc@Cookeslaw.com". Mr. Cooke's
fee is $300.00 per hour.
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