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    1 Reply Latest reply on May 13, 2010 1:51 PM by phanio

    Best way to grow company

    mpkgrading Newbie
      Don't know much about financing but have owned a successful erosion control business for the past three years and am looking for some advice We have stayed busy through the recession and we are in one of the best regions in the united states for construction.. I am looking for advice on funding or gaining a partner. I am fixing to start on around $500,000 worth of work and am looking for some help with this and would like someone to help me with day to day operations. I am owed around $270,000 and owe out around $140,000. I have plenty of equity in my equipment. People I have talked to about this seem to think that a partnership is not the way to go but my thoughts are they can help financially and with everyday operations. Any advice on the best way to grow my business would be greatly appreciated. Thanks.
        • Re: Best way to grow company
          phanio Pioneer
          A partnership might be a great way - provided that it is the right partner - someone who bring just as much as you do to the table. If you pursue this option, make sure you take the time and spend a little money in drafting a great, comprehensive partnership agreement - do this in the beginning as you never know what will happen later.

          You also have some financing options - one would be to factor the accounts you are waiting to be paid for. You can get advances for those invoices to have the funds to run and grow your business now. Plus, these companies can help with collections.

          You can also factor your future jobs. Many non-bank companies will advance the funds you need to complete jobs - it is called purchase order financing. You can use the funds to purchase inventory, materials, etc as well as hire the labor you need.

          Plus, if you have equity in your equipment, you can always sell that equipment for cash to a leasing company - then lease that equipment back on favorable terms. This is just a paper transaction, you would not actually have to give them the equipment. The idea is get the cash you need today and lease your equipment back by making monthly payments, just like making monthly loan payments.

          Lastly, there are many unsecured lenders that can lend upwards of $100K + based on your length in business and current income level.

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