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FINANCIAL MANAGEMENT
CHECK POINT 50: SOURCES OF CAPITAL

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1. reasons for capital requirement
2. capital requirement questions
3. main methods of financing
4. debt financing advantages
5. debt financing disadvantages
6. equity financing advantages
7. equity financing disadvantages
8. finance selection factors
9. financial leverage
10. small business example
financial leverage
11. financial leverage advantages and disadvantages
12. detailed financial plans
13. additional sources of finance
14. accounts receivable financing
15. revolving line of credit
16. inventory financing
17. capital leasing
18. sBA loans
19. small business investment companies (SBIC)
20. certified development companies (CDC)
21. venture capital
22. angel capital
23. minority funding sources
24. for serious business owners only
25. the latest information online
 

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FINANCIAL MANAGEMENT
CHECK POINT 50: SOURCES OF CAPITAL

Please Select Any Topic In Check Point 50 Below And Click.

1. reasons for capital requirement
2. capital requirement questions
3. main methods of financing
4. debt financing advantages
5. debt financing disadvantages
6. equity financing advantages
7. equity financing disadvantages
8. finance selection factors
9. financial leverage
10. small business example
financial leverage
11. financial leverage advantages and disadvantages
12. detailed financial plans
13. additional sources of finance
14. accounts receivable financing
15. revolving line of credit
16. inventory financing
17. capital leasing
18. sBA loans
19. small business investment companies (SBIC)
20. certified development companies (CDC)
21. venture capital
22. angel capital
23. minority funding sources
24. for serious business owners only
25. the latest information online
 

DO I NEED TO KNOW THIS CHECK POINT?

 

WELCOME TO CHECK POINT 50

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TUTORIAL 3 Financial Management TUTORIAL 4 Operations Management TUTORIAL 5 Marketing
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HOW CAN YOU BENEFIT FROM CHECK POINT 50?

 
The main purpose of this check point is to provide you and your management team with detailed information about Sources Of Capital and how to apply this information to maximize your company's performance.
 
In this check point you will learn:
 
• About capital requirements questions.
• About two main methods of financing.
• About debt financing advantages and disadvantages.
• About equity financing advantages and disadvantages.
• About finance selection process and factors.
• About advantages and disadvantages of financial leverage.
• About accounts receivable financing or factoring.
• About revolving line of credit and inventory financing.
• About capital leasing, SBA, SBIC and CDC loans.
• About venture and angel capital. and much more.
 

LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 41

 
You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point.
 
You and your team should adhere to basic lean management guidelines on a continuous basis:
 
Treat your customers as the most important part of your business.
Provide your customers with the best possible value of products and services.
Meet your customers' requirements with a positive energy on a timely basis.
Provide your customers with consistent and reliable after-sales service.
Treat your customers, employees, suppliers, and business associates with genuine respect.
Identify your company's operational weaknesses, non-value-added activities, and waste.
Implement the process of continuous improvements on organization-wide basis.
Eliminate or minimize your company's non-value-added activities and waste.
Streamline your company's operational processes and maximize overall flow efficiency.
Reduce your company's operational costs in all areas of business activities.
Maximize the quality at the source of all operational processes and activities.
Ensure regular evaluation of your employees' performance and required level of knowledge.
Implement fair compensation of your employees based on their overall performance.
Motivate your partners and employees to adhere to high ethical standards of behavior.
Maximize safety for your customers, employees, suppliers, and business associates.
Provide opportunities for a continuous professional growth of partners and employees.
Pay attention to "how" positive results are achieved and constantly try to improve them.
Cultivate long-term relationships with your customers, suppliers, employees, and business associates.

1. REASONS FOR CAPITAL REQUIREMENTS

CAPITAL REQUIREMENTS

Business owners and financial managers must be fully familiar with various methods and sources of financing to ensure stable and profitable performance of their organization.

One of the major elements of Financial Planning is the search for the additional Capital that may be required by your company during a particular accounting period. 

Your company may need additional capital for several reasons, depending on the nature of its activities, stage of development, profitability, and the aspirations of your shareholders. Some of the typical examples of Capital Requirements are outlined below.

REASONS FOR CAPITAL REQUIREMENTS

1.

A new company needs start-up and working capital.

2.

An existing company needs additional capital for research and development of new products and services, acquisition of capital assets, or financing of an increased volume of sales.

3.

A company needs additional capital to compensate for an anticipated cash shortage during a specific accounting period.

 

ADDITIONAL INFORMATION ONLINE

Assessing Initial Capital Requirements By P. Valivati, Mentor Square
Small Business Start-Up Loan By Tony Baptista, BizCredit Expert.
Secrets To Getting $50,000 In 60-90 Days By Dominic Wallace.
How To Obtain $50,000 In Business This Year By Ty Crandall.
Unsecured Small Business Loan By NopgBusinessLoans.

2. CAPITAL REQUIREMENTS QUESTIONS

CAPITAL REQUIREMENTS

Irrespective of the reason for additional Capital Requirement, the financial manager needs to provide satisfactory answers to several questions outlined below.

CAPITAL REQUIREMENTS QUESTIONS

1.

Who requires the capital?

2.

How much capital is required?

3.

When is the capital required?

4.

For how long is the capital required?

5.

How will the capital be used?

6.

When will the capital be paid back?

7.

How will the capital and interest be paid back?

8.

What guarantees can be provided?

3. MAIN METHODS OF FINANCING

METHODS OF FINANCING

Once acceptable answers to capital requirement questions have been provided, the search for suitable sources of capital should begin. The first step in this process entails identification of the most viable Method Of Financing. Two commonly used methods of financing are illustrated below.

TWO MAIN METHODS OF FINANCING

 

Debt 
Financing

 

Equity 
Financing

 

ADDITIONAL INFORMATION ONLINE

Equity Vs. Debt By Kahn Academy.
Debt Vs. Equity By S. L. Hui, CashFlowKungFu.
Debt And Equity Financing By EconomicEducation.
Introduction To Debt And Equity Financing By Matt Alanis, Alanis Business Academy.

4. DEBT FINANCING ADVANTAGES

DEBT FINANCING

Debt Financing essentially means borrowing money from outside sources or creditors at pre-arranged repayment conditions. Such conditions represent four essential factors in debt financing illustrated below.

FOUR FACTORS IN DEBT FINANCING

     
The Length 
Of 
The Loan 
Period
  Rate 
Of 
Interest
   Repayment Procedures   Penalties 
On
 Late 
Payments

The Debt Financing Method has several advantages outlined below.

DEBT FINANCING ADVANTAGES

1.

The cost of interest can be estimated in advance in accordance with the prevailing prime bank lending rate.

2.

Creditors do not have any claim on the future earnings of the company.

3.

Debt may be used to produce an additional return on shareholders' equity (this is known as "leverage" and discussed below).

4.

The cost of interest is an operating expense which is tax-deductible, subject to IRS allowances.*

5.

Debt does not affect the status of shareholders within the company.

* Note:

For additional information please go to Entrepreneur online.

5. DEBT FINANCING DISADVANTAGES

Despite its advantages, the Debt Financing Method also has several disadvantages outlined below.

DEBT FINANCING DISADVANTAGES

1.

The cost of interest creates a constant burden on the company's cash flow and decreases its profitability.

2.

Debt is not permanent capital and must be repaid accurately and in a timely manner to avoid penalties and a deteriorated credit rating.

3.

Additional loans must be arranged to pay existing creditors if current debts cannot be paid upon maturity.

4.

Debt may require a pledge of the company shareholders' assets to creditors, i.e. personal guarantees, thereby restricting shareholders' control over their company and placing their personal assets at risk.

6. EQUITY FINANCING ADVANTAGES

EQUITY FINANCING

Equity Financing means acquisition of the company's stock by its shareholders. By investing their personal capital into the company, shareholders acquire additional interest, or Equity, in the business. The major difference between equity financing and debt financing is that equity financing is provided by the shareholders without pre-arranged repayment conditions.

The Equity Financing Method has several advantages, which are outlined below.

EQUITY FINANCING ADVANTAGES

1.

Equity financing does not incur a fixed cost since interest payment procedure on the invested capital is regulated by shareholders.

2.

Equity financing in the form of stock provides permanent capital which usually does not have to be paid back.

3.

A higher level of equity enables shareholders to raise additional capital through debt financing.

7. EQUITY FINANCING DISADVANTAGES

The Equity Financing Method also has several disadvantages outlined below.

EQUITY FINANCING DISADVANTAGES

1.

Equity financing by additional investors reduces the nominal value of stock held by an individual shareholder, i.e. it “dilutes” the nominal value of each share by injecting additional equity capital.

2.

Since equity capital is not tax deductible when repaid in the form of dividends to shareholders, it has a higher cost in comparison with debt financing.

3.

Equity financing provides investors with additional control over the business.

8. FINANCE SELECTION FACTORS

FINANCE SELECTION PROCESS

Once the advantages and disadvantages of both methods of financing are clarified, the most appropriate sources of capital need to be selected. There are three important factors that should be considered during the Finance Selection Process. These factors are illustrated below.

FINANCE SELECTION FACTORS

   
Cost   Cash Flow   Risk
How much will capital ultimately cost shareholders?
 
How will additional capital help solve existing and potential cash flow problems?
 
What is the risk of losing control over the business?

9. FINANCIAL LEVERAGE

FINANCIAL LEVERAGE

Financial Leverage is another important aspect of financing that needs to be understood by business owners and financial managers. This relates specifically to leveraging of creditors' funds.
 
In simple terms, financial leverage can be defined as the ability of company shareholders to increase the return on their equity by using creditors' capital, i.e., making money by using OPM (Other People's Money).

You may sometimes wonder how is it possible that some business people work very hard all their lives and still continue to struggle by barely paying off their bills from one month to the next. Other business people, conversely, also work hard, but they succeed financially beyond their expectation. One of the answers may lie in the ability of financially successful business people to effectively use the principles of financial leverage and to earn additional profits using OPM (other people’s money).

A typical illustration of financial leverage is presented next.

 

ADDITIONAL INFORMATION ONLINE

Leverage Explained By Jeffrey Mrizek.
What Is Leverage By Saving And Investing.
Financial Leverage Explained By Brandon Jackson.
Introduction To Financial Leverage By Kanjohn Video.
Financial Leverage: Does Time = Money? By Christopher Hughes.

10. SMALL BUSINESS EXAMPLE
FINANCIAL LEVERAGE

FINANCIAL LEVERAGE

Consider two identical organizations: Company X and Company Y

Both companies have the same equity capital of $100,000, provided by shareholders, and debt capital of $20,000 borrowed from creditors. Both companies earn the same rate of return on total capital before interest and taxes - 15%, pay the same tax deductible fixed interest on debt - 10%, and are in the same tax bracket - 30%.

Later, Company Y borrows an additional $80,000 from creditors, thereby increasing its total capital to $200,000. This, in turn causes an increase of net earnings from $11,200 to $14,000 and a subsequent increase of the rate of return on shareholders' equity from 11.2% to 14%. Such an increase is the direct result of more effective leveraging of creditors' capital as illustrated below.

Description Company X Company Y

+

Long-Term Debt

20,000

100,000

+

Shareholders’ Equity

100,000

100,000

=

Total Capital

120,000

200,000

+

Earnings Before Interest and Taxes (at 15%)

18,000

30,000

-

Interest Expense (at 10% of Long-Term Debt)

2,000

10,000

=

Earnings Before Taxes

16,000

20,000

-

Taxes at 30%

4,800

6,000

=

Net Earnings

11,200

14,000

Rate of Return on Shareholders' Equity:

   

Net Earnings                
Shareholders' Equity

11,200   = 11.2%
100,000

14,000  = 14.0%
100,000

11. FINANCIAL LEVERAGE ADVANTAGES AND DISADVANTAGES

FINANCIAL LEVERAGE

It is apparent from the above example that leveraging of creditors' capital provides shareholders with several advantages. Some of the advantages of Financial Leverage are outlined below.

FINANCIAL LEVERAGE ADVANTAGES

1.

By borrowing and properly utilizing additional capital supplied by creditors, shareholders may increase the overall return on their equity.

2.

An increased level of capital may enhance the company's growth and help to find additional opportunities in the marketplace.

3.

By borrowing additional capital from outside sources, shareholders do not relinquish control over their company.

 

FINANCIAL LEVERAGE DISADVANTAGES

Borrowing capital from outside sources also has certain disadvantages, described earlier in the context of the Debt Financing Method. 

Moreover, financial leveraging may have negative effects if management is not capable of utilizing the borrowed capital in an efficient manner. This may result in paying interest on the debt in excess of the company's rate of earnings, thereby decreasing the rate of return on shareholders' equity, or creating a Negative Financial Leverage.

12. DETAILED FINANCIAL PLANS

DETAILED FINANCIAL PLANS

Upon selecting the Debt Financing Method, it is necessary to identify appropriate sources of financing well in advance instead of waiting until the last moment. This is particularly important in securing the most favorable conditions of loan repayment. 

Prior to approaching potential lenders, such as banks and other financial institutions, a Detailed Financial Plan must be prepared. This plan must specify the size, period, and purpose of the loan requirement, how it will be repaid, and what securities can be offered to the lender. 

The company's request for additional capital must also be supported by the most recent Financial Statements and comprehensive budget projections for the forthcoming fiscal period. Once all information is available, the potential lender will be in a better position to make an appropriate decision.

13. ADDITIONAL SOURCES OF FINANCE

SOURCES OF FINANCE

Additional Sources Of Finance that are frequently considered and utilized by various companies are summarized below.

ADDITIONAL SOURCES OF FINANCE

1.

Accounts receivable financing.

2.

Revolving line of credit.

3.

Inventory financing.

4.

Capital leasing.

5.

SBA loans.

6.

SBIC loans.

7.

CDC loans.

8.

Venture capital.

9.

Angel capital.

10.

Minority funding sources.

 

EFFECTIVENESS OF A FINANCING METHOD

Regardless of the financing method used, business owners and financial managers need to ascertain whether or not such a method helps to improve Overall Company Performance And Profitability. This can only be accomplished if the company pays reasonable rates of interest on borrowed capital and manages to utilize additional finance in the most efficient manner.

14. ACCOUNTS RECEIVABLE FINANCING

ACCOUNTS RECEIVABLE FINANCING

Accounts Receivable Financing, or "Factoring", or "Invoice Discounting", is another important method of getting quick finance.

In terms of this arrangement, the company concedes the right to collect accounts receivable or "cedes the book", to a financial institution. In return, the company receives cash upon shipping finished products to customers without waiting for their payment, which may be 30, 60, 90, 120, or "hundred and plenty" days. It is important to remember that this type of financing is usually expensive and, therefore, is often left as the last resort for raising capital quickly.

When using the Factoring Method, management should also keep in mind that the business must perform extremely efficiently to justify the additional cost of financing.  This will create a positive financial leverage and a positive cash flow. If the business is not operating efficiently, the factoring method may become a prescription for financial difficulties by creating a negative financial leverage and possible failure.

ADDITIONAL INFORMATION ABOUT FACTORING

If you would like to know how to go about Factoring, please send your e-mail for additional free information to Lean Business Club, the Member Benefits Department at: Factoring@LeanBusinessClub.com

ADDITIONAL INFORMATION ONLINE

Accounts Receivable Financing By Gregory Tucker.
Introduction To Invoice Discounting By Tim Lea.
Bank Financing Vs. Receivable Factoring By Ian Johnson.
Invoice Factoring, Is It Right For Your Company? By Toolroom.

15. REVOLVING LINE OF CREDIT

REVOLVING LINE OF CREDIT

Revolving Line Of Credit is usually provided by a bank that carries the company's current account. In terms of this arrangement, the bank makes certain funds available to the company on a continuous basis and imposes a total credit limit. 

The company, in turn, is required to provide the bank with adequate securities such as Pledge Of Accounts Receivable, or the "Book" (of accounts receivable), and personal guarantees of shareholders.

ADDITIONAL INFORMATION ONLINE

What Is A Revolving Line Of Credit By eHowFinance.
Small Business Line Of Credit By Small Business Loaner.
A Business Line Of Credit Is A Revolving Line Of Credit By Unsecured Biz Loans.
How To Get An Unsecured Line Of Credit By Duncan Wierman And John Syron.

16. INVENTORY FINANCING

INVENTORY FINANCING

Inventory Financing is a method used primarily by merchandising and manufacturing companies.

The company usually purchases the bulk of materials or merchandise inventory on credit and pays its suppliers within 1 to 90 days or later, depending upon the specific arrangement. The inventory, in turn, can be used by the company in the manufacturing process or sold directly to customers prior to paying the suppliers, thereby generating additional revenue and a positive cash flow.

ADDITIONAL INFORMATION ONLINE

Inventory Financing By Kristine Anderson.
Inventory Finance Testimonial By IMM Finnacial.
GE Inventory Financing By Daniel Ariens And GE Capital.
A/R & Inventory financing By Daniel Godfrey And Joseph Coleman.

17. CAPITAL LEASING

CAPITAL LEASING

Capital Leasing also known as Finance Leasing, is a long-term financing method that enables the company to obtain the right of using expensive capital equipment without paying its full price upfront to the supplier. In accordance with this arrangement, the purchaser may derive immediate benefits from leasing equipment and generate additional revenues as a result of its usage.

The ownership of Leased Equipment remains with the supplier. However, the purchaser may enjoy an additional tax benefits since all leasing payments are fully tax deductible if the equipment is leased to a company. 

Once the equipment is fully paid for, then the Lessor (the leasing company) may release the title (right of ownership) to the Lessee (the user-company) by a prior agreement, for a nominal residual buy-back fee of, say, $1, and the user-company may become the new owner of such equipment.

Once the title changes and the user-company becomes the owner of the formerly leased equipment, IRS will allow this company to charge its operating expense account with equipment operating costs and depreciation. This may further help the company in reducing its tax liability for each operating period.

This may also apply to vehicles, airplanes, boats and other capital assets which IRS may approve as reasonably necessary equipment for continuing business operations.

ADVANTAGES OF CAPITAL LEASING

1.

Requires little or no down-payment.

2.

Conserves working capital; leasing normally provides 100% financing.

3.

Avoids use of short-term bank lines, conserving borrowing capacity for financing inventory, accounts receivable and other short term needs.

4.

Provides a new source of funds, often increasing the pool of capital available to your company, which can be particularly attractive during periods of expansion or when "tight" money conditions exist.

5.

Provides intermediate-term financing, longer than most private placement.

6.

Avoids working capital, net worth, dividend and other restrictions common to most other types of intermediate and long-term financing.

7.

When long-term interest rates are unattractive, leasing can be used to delay permanent financing until rates improve.

8.

Provides flexibility with regards to amounts financed, payment structures, and other terms.

9.

When equity markets are unattractive, equipment leasing may satisfy your capital expenditure requirements until equity issues become more attractive.

10.

Allows for the payment of the equipment out of earnings rather than equity capital.

11.

Allows the lessee to trade the value of depreciation for lower effective interest rates.

12.

Provides lower cost financing on larger equipment purchases, when the lessor can "leverage" the tax benefits.

13.

Provides for the acquisition of needed equipment that had not been foreseen in capital budget planning.

14.

Frees funds for ownership of appreciating assets such as real estate.

 

ADDITIONAL INFORMATION ABOUT CAPITAL LEASING

If you would like to know how to go about Capital Leasing, please send your e-mail for additional free information to Lean Business Club, the Member Benefits Department at: Leasing@LeanBusinessClub.com

You can obtain additional information about Leasing Procedures from Equipment Leasing And Finance Association (ELFA) online.

ADDITIONAL INFORMATION ONLINE

Capital Lease By Roger Philipp.
How Does Leasing A Car Work? By Howdy Honda.
Lease Financing Explained By Prime Capital, AmploMedia.
Capital Leases Vs. Operating Leases By Scott Bogart CPA.
Equipment Leasing Vs. Paying Cash By Dan Horvitch, Balboa Capital Corp.

18. SBA LOANS

SBA LOANS

The U.S. Small Business Administration (SBA) offers federally guaranteed SBA Loans to small business owners all over the U.S. These loans are quite popular among small business owners, since they are offered at reasonable rates with very user-friendly loan collateral requirements and overall conditions for loan repayment. The company may arrange a special loan from SBA, provided the company qualifies for it.

SBA loans are usually offered to smaller companies for start-up and development purposes. These loans are made by local banks or other lending institutions, and guaranteed by the SBA. On rare occasions SBA provides direct finance to companies.

To qualify for an SBA loan the company must meet certain Criteria Requirements, some of which are outlined below.

SBA LOAN QUALIFICATION REQUIREMENTS

1.

All loan applicants must be active in the management of the company.

2.

All loan applicants must have a clean credit record.

3.

All loan applicants must show their own investment in the business of at least 30% of the required capital.

4.

Loan applicants must prepare a realistic cash flow budget, which will show that the business will be able to repay the loan.

5.

The debt to shareholders equity ratio must be within the parameters prescribed by the SBA's guidelines.

 

SBA LOW DOCUMENTATION PROGRAM

The loan applications for under $100,000 may be accomplished through a LowDoc (Low Documentation) Program and may be approved within one day. 

Loans in excess of $100,000 require much more information, including personal financial statements, three years of tax returns, and three years of cash flow projections.

ADDITIONAL INFORMATION ONLINE

You can obtain additional information about the SBA Loan Programs provided by Small Business Administration online or by phone at: (800) 827-5722.

19. SMALL BUSINESS INVESTMENT COMPANIES (SBIC)

SMALL BUSINESS INVESTMENT COMPANIES (SBIC)

Small Business Investment Companies (SBIC) may be another source for providing start-up or development capital to small companies with relatively favorable terms and repayment conditions. 

SBICs are privately owned finance companies operating under the umbrella of the Small Business Administration. There are hundreds of SBIC firms in the U.S., and their locations may be found by contacting the local SBA office.

ADDITIONAL INFORMATION ONLINE

You can obtain additional information about the Small Business Investment Centers (SBIC's) provided by Small Business Administration online or by phone at: (800) 827-5722.

20. CERTIFIED DEVELOPMENT COMPANIES (CDC)

CERTIFIED DEVELOPMENT COMPANIES (CDC)

Certified Development Companies (CDCs) represent an additional source of obtaining finance at relatively user-friendly terms and conditions of repayment. CDCs also operate under the umbrella of the Small Business Administration, providing a 504 Loan Refinancing Program. This program, in essence, provides a long-term (10 - 20 Years) source of finance, based on favorable fixed-rate loan repayment conditions.

CDC Loans are used primarily to help small business owners finance the purchase of such capital assets, as land and buildings. Certified Development Companies usually work with local banks or other financial institutions and provide a finance package which may typically include 40% from the CDC, 50% from the local lender, and 10% from the owner. The purchased property is used as collateral for completing the financial transaction.

There are hundreds of CDCs around the country and they may be located through the local SBA office, by inquiring about the 504 Loan Program.

ADDITIONAL INFORMATION ONLINE

You can obtain additional information about the 504 Loan Program provided by Certified Development Companies (CDC's) and Small Business Administration online or by phone at: (800) 827-5722.

21. VENTURE CAPITAL

VENTURE CAPITAL

Venture capital firms specialize in providing Venture Capital, typically to medium-sized and larger companies which may offer potentially high annual returns - 25% or higher, to investors.

Since Venture Capital Financing is a highly risky proposition for investors, they are extremely selective in terms of approving loan requests. Usually only 2% to 3% of such requests are actually approved, and each deal may involve a very large sum of money. Because of the difficulties in obtaining fast approval for financing by venture capital firms, small business owners usually don’t rely on this form of financing as a popular financing method.

ADDITIONAL INFORMATION ONLINE

You can obtain additional information about the Venture Capital online:

National Venture Capital Association

Venture Capital Journal

Startups.

Entrepreneur

VCFodder

VFinance

Garage

22. ANGEL CAPITAL

ANGEL CAPITAL

Angel Capital is a relatively new concept of raising capital by small business owners. 

The Angel Capital Financing is provided by people who are called "Angels" because they are generally wealthy ex-entrepreneurs who are keen to help other small business owners in fulfilling their dreams by lending money at favorable terms and conditions of repayment.

In addition to being motivated to help other entrepreneurs, some Angels may also be interested in being involved in one way or another in a specific business project, or simply to invest a portion of their capital and to earn a potentially high return on investment.

SBA has organized a special network of Accredited Small Business Investors, or Angels, in order to bring these Angels and aspiring entrepreneurs together. This network is called Angel Capital Electronic Network (ACE-Net) and it can be located online. SBA's requirements for accredited small business investors include a net worth in excess of $1,000,000 or net annual income in excess of $200,000.

Additional information about Angels in a particular geographic location may be provided by various financial organizations, local banks, Chambers of Commerce, State Department of Commerce, Electronic Yellow Pages, accountants or attorneys online as outlined below.

ADDITIONAL INFORMATION ONLINE

You can obtain additional information about the Angel Capital online:

Angel Investors Vs. Venture Capitalists By Jay Adelson.

Angel Investors By Stanford Business.

Angel Capital Education Foundation

The US Chamber Of Commerce 

Angel Capital Association

Angel Capital Network

Business Finance 

23. MINORITY FUNDING SOURCES

MINORITY FUNDING SOURCES

There are several sources of finance in the U.S. which are specifically offered to Minority-Owned Businesses, and Women-Owned Businesses, as outlined below.

ADDITIONAL INFORMATION ONLINE

• The U.S. Small Business Administration (SBA)

Most SBA Agencies have specially designated programs for minority-owned businesses and women owned businesses. These programs may be identified by contacting the local SBA office at (800) 827- 5722. Additional information may be obtained online at:

Small Business Administration

The U.S. Commerce Department's Minority Business Development Agency

This agency provides funding to Business Development Centers (BDCs) on a nation-wide basis. Further information may be obtained online at:

The Minority Business Development Agency

• The American Bankers Association (ABA) in Washington D.C.

This association represents various banks on a nation-wide basis, including   minority-owned banks which aim at providing finance to minority owned business. Additional information may be obtained online at:

The American Bankers Association (ABA)

24. FOR SERIOUS BUSINESS OWNERS ONLY

ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY?

Reprinted with permission.

25. FTHE LATEST INFORMATION ONLINE

 

LESSON FOR TODAY:
Manage Your Business Within Your Limits -
Even If You Have To Borrow Money To Do It!

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