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Topic 10 Sources of Financing - Coggle Diagram
Topic 10 Sources of Financing
Secret to successful financing
Raising money takes time and effort.
Creativity counts.
The money is out there; the key is knowing where to look.
The Internet puts at entrepreneur’s fingertips vast resources of information that can lead to financing.
Choosing the right sources of capital can be as important
Entrepreneurs cannot overestimate the importance of making sure that the “chemistry” among themselves
Be thoroughly prepared before approaching lenders and investors.
Plan an exit strategy.
Put social media to work to locate potential investors.
When capital gets tight remember to bootstrap.
Financing a business
Layered financing
Capital
Equity
Sources of equity financing
Accelerators
Angels
Crowdfunding
Venture capital companies
Friends and family members
Corporate venture capital
Personal saving
Public stock sale
Debt
Sources of debt capital
Commercial banks
Short term loans
Immediate and long-term loans
Nonbank sources of debt capital
Purchase order financing
Asset-based lenders
Inventory financing
Vendor financing
Saving and loan associations
Other method
Leasing
Rollovers as business startups
Factoring accounts receivable
Credit cards
Initial public offering
Strong record of earnings
Solid position in a rapidly-growing industry
Scalability
Sound management team with experience and a strong board of directors
Consistently high growth rates
Step to take a company public
File with the SEC
Wait to “go effective”
Prepare the registration statement
Road show
Meet all state requirement
Sign underwriting agreement
Negotiate a letter of intent
Choose the underwriter