ForumsFinancing Tips

How much capital are you looking for?

In some ways the amount will dictate whether you should focus on debt or if you need large amounts of capital but you you don't have enough credit and collateral to raise it via debt (or you want to minimize debt so your cash flow is stronger) ... then you need to look at bringing in equity investors.

If your plan is solid and the business a viable opportunity you you may be able to find a local "Angel" investor who would provide some funding for you. If you need a large amount of funding you should look at using your plan for the basis to have your attorney prepare a Private Placement Memorandum. Also known as a PPM this is the document that covers all the legal aspects of raising capital from from private investors by selling them stock (and sometimes bonds, which are often convertible to equity). if you are interested in raising capital that way then check with your attorney about a Reg D PPM filing; the costs etc. For that your plan should be well prepared and include at least 3 years of pro forma financial projections.

I hope the above gives your some help or food for thought. Best of luck to you.

Dennis Lowery
Adducent, Inc.