Company Helps Entrepreneurs Leverage Underutilized Accounting Tool to Raise Capital for their Business

Countless entrepreneurs are watching their business languish on the vine because they have exhausted traditional funding sources and don’t know where else to turn.

That limited perspective bothers serial start-up entrepreneur Peter J. Burns III, whose company Burn$ Funding has built a discipline around what are called Cost Segregation studies.

Cost segregation for raising capital

What is a Cost Segregation study?

A Cost Segregation study identifies aspects of physical property that can be placed on accelerated depreciation life cycles, potentially resulting in huge tax savings for eligible property owners.

“One of the first questions that comes to mind when I tell a small-business owner about it is, ‘Is it legal?’,”…

Continue reading

Raising Money to Expand Your Small Business

Running your own business can be hugely rewarding and lucrative, particularly as your business starts to grow. After working hard at college and achieving good grades, it is only natural that you want to enjoy a financially rewarding future and operating your own small business is a great way to do this. However, in order to continue reaping the rewards, you need to look at expanding your business as time goes on.

Raising money for business growth

Of course, if you plan to expand your business, one of the things you need to consider is how you will raise the money to do this.

There are various options available when it comes to getting the cash you need for expansion, although the options that are open to you will depend on various factors such as your credit score and the turnover of the business amongst other things.…

Continue reading

4 Ways to Raise Capital for Your Small Business

Capital is essential for new and growing small businesses. Whether your small business is just starting out or expanding, raising capital can be challenging. Consider these smart financial strategies for funding your small business venture.

Raising capital for small business

Get a Loan Using the SBA Tool

The U.S. Small Business Association (SBA) exists so small businesses such as yours succeed, so make sure you don’t overlook this valuable government resource. Its Lender Match tool helps you find SBA-approved loans for launching and expanding small business operations. These loans are often easier for small businesses to obtain than loans from their own banks, but they have very competitive terms.…

Continue reading

Angels vs. Venture Capital: Disposing of the Myths

Many people often confuse or interchange angel investors, venture capitalists, and private equity deals, which are among the major sources of start-up income. While there can be a few similarities in the right light, when you compare them side-by-side, they’re apples and oranges. People often believe that business angels, venture capital and private equity are all one and the same.

Angel investor

A major similarity is that both angel investors and venture capitalists are making their investments into private companies for the return of private equity in those companies. Private equity is simply shares or stakes (sometimes securities) in any company which isn’t registered with the stock market.…

Continue reading

What Is Working Capital Financing?

Working capital “¦ the lifeblood of growing companies, and a term every corporate accountant and analyst must have an intimate understanding of. Easily defined, working capital is simply the difference between current assets minus current liabilities, or the cash on hand for a company to use as necessary.

For any successful business to thrive, it must have ready reserves of working capital, which can be utilized at a moment’s notice. Without sufficient working capital, an organization is doomed to fail – regardless of the quality of its goods and services.

What Is Working Capital Financing?

There are plenty of options when it comes to acquiring working capital; one of the more popular ways is a commercial term loan.  …

Continue reading

Bank of America Announces New Program to Help Spur Small Business Lending Nationwide

Bank of American lending program for small businessesBank of America (BOA), one of the world’s largest financial institutions, has announced it will provide $10 million in grants to nonprofit lenders, such as Community Development Financial Institutions (CDFIs), to leverage funds from the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA) for lending to small and rural businesses.

The grants to nonprofits will help up to 8,000 businesses obtain new loans over the next 12 Months.

The CDFI’s will use the grant money as loan loss reserves, which BOA hopes will unlock millions in low-cost capital for small business microloans program nationwide.

SBA and USDA microloans are made through local nonprofit lenders, which also provide business training and technical assistance.…

Continue reading

How to Buy a Small Business Using Creative Financing as the U.S. Economy Recovers

using creative financing to buy a businessThe U.S. economy’s worst recession in the post-war era has begun to turn for the better. Yet, despite the fact that the doom and gloom of the past 20-plus months may be behind us, entrepreneurs seeking to buy businesses still find it difficult to get banks to finance their purchases.

Fortunately, there are a multitude of other options available to business buyers and they center on an entrepreneur’s ability to use creative financing for his or her purchase.

Using Other People’s Money

The vast majority of small business entrepreneurs do not have enough capital to buy a business outright, and banks can present insurmountable barriers.…

Continue reading