Angel investors typically do not invest in real estate. You can create a table at showcases all of the available assets that can be used as a security for the investors that you are seeking especially if you are seeking angel investment for real estate purposes. Often, you can syndicate your deal as it pertains to raising a large amount of capital, and this is especially important for real estate needs. In most instances, venture-capital firms do not want to provide capital to real estate businesses unless there is the expectation that the real estate will go public via a real estate investment trust. More and more angel investors are investing in hard money mortgages, secured by real property purchases, due to the fact that there is an immediate upfront fee paid to them for providing capital.
If you are looking for angel investors then you may need a private placement memorandum even if you are seeking to purchase real property assets with the proceeds that you are seeking. The current economic climate has made lending very difficult for people that are involved with this particular industry. Syndicated investments are very important in the world of small business finance especially if you are seeking to acquire an owner occupied property or related asset.
Typically, only highly experienced entrepreneurs are able to raise large amounts of capital specifically for the purpose of acquiring income producing properties. Loans that are provided by angel investors typically are not typically used for real property purposes unless it is for a down payment for the specific parcel. On a side note, before you send any materials to a third-party, your attorney should review each and every document that you produce.
It is important to consult with your CPA as it pertains to funding methods especially for large scale purposes such as owner occupied properties or related real properties. Your certified public accountant will provide you with all of the necessary documentation as it relates to securing a parcel of property, the anticipated appreciate associated with the property, and an applicable loan amortization schedule if it is required by your real estate angel investor.
Additionally, you should always have a property appraiser on hand to ensure that your angel investor understands the value of the property that you are purchasing either for owner occupied usage or for income production. This documentation can be used for soliciting both equity capital as well as debt capital as it relates to your property business.
Angel Investor List Download. No registration required! Includes Free Business Plan Template.
Looking For Angel Investors is a website dedicated to people finding private investment.
Matthew Deutsch is a prominent business plan writer. His work has been included in nine books pertaining to this subject.
Start-Up Financing | Unsecured Lines | Credit Suite | Uplyft Capital | Lendingtree
Thursday, July 14, 2016
Business Accounts Receivable Financing
Why is business accounts receivable factoring so popular today? Who is doing it, why are they doing it and when is the best time to explore accounts receivable factoring agreements? The main reason for the popularity of factoring is the economic cycles that businesses experience.
As economic cycles turn downward and banks tighten up credit, loans become hard to come by as was in my case during the global recession of 2008-2009. In these tough times, accounts receivable factoring companies are filling in the need by offering the capital businesses need to keep their doors open, and even to grow and expand.
Factoring has become a key alternative finance strategy for many small businesses today. In fact, many small businesses are now preferring factoring over applying for loans with banks and the small business administration (SBA), who often have a more rigorous and lengthy process.
It's also much quicker to access capital when factoring as opposed to the long and painful process of obtaining a loan. What are some of the more common ways companies are engaging in business accounts receivable factoring?
Trucking companies factor freight to cover wages and salaries for drivers. Staffing agencies factor their invoices so they can pay their head count / staff. In medical accounts receivable factoring, which is a very specialized niche, medical companies factor out receivables owed to them by insurance companies and even the government to fund their day to day needs (expenses) in the short term.
Businesses of all sizes are also pursuing accounts receivable factoring companies because these companies also often offer purchase order refinancing, working capital credit lines, growth or expansion funding, inventory financing and other types of asset based lending where businesses take a loan by pledging their physical assets.
Here are answers to three common questions that must be going through your mind right now: Why should you factor?
Simple. It is easier, faster and in many cases can be cheaper. Once you are accepted or have a relationship with a solid accounts receivable factoring company, you essentially have a revolving line of credit with them. Think about it, if a company factors your invoices once, chances are they will do it again, and again, and again. They win, and most importantly YOU win.
Here is the other thing. You no longer have to worry about who will process accounts receivables at your business. when you factor, you are essentially outsourcing the entire function. Let them worry about it while you worry about growing your business!
What size business can factor?
Any kind really. However factoring is most common with small to medium size businesses as large Corporates have their own alternative capital or funding sources. The answer is actually simpler than that. If you have receivables, you can for sure factor.
When should you consider business accounts receivable factoring?
Do you need cash to grow and expand your business? Do you need more funding to run your day to day operations? Who doesn't?
Are you having trouble or simply don't want to acquire a business or SBA loan? If you answered yes to any of these questions and you feel you are ready to take the next step in your business, then YOU SHOULD consider accounts receivable factoring.
Read more about receivable factoring on Curt Matsen, CPA's website here: http://www.accountsreceivablefactoringhq.com
As economic cycles turn downward and banks tighten up credit, loans become hard to come by as was in my case during the global recession of 2008-2009. In these tough times, accounts receivable factoring companies are filling in the need by offering the capital businesses need to keep their doors open, and even to grow and expand.
Factoring has become a key alternative finance strategy for many small businesses today. In fact, many small businesses are now preferring factoring over applying for loans with banks and the small business administration (SBA), who often have a more rigorous and lengthy process.
It's also much quicker to access capital when factoring as opposed to the long and painful process of obtaining a loan. What are some of the more common ways companies are engaging in business accounts receivable factoring?
Trucking companies factor freight to cover wages and salaries for drivers. Staffing agencies factor their invoices so they can pay their head count / staff. In medical accounts receivable factoring, which is a very specialized niche, medical companies factor out receivables owed to them by insurance companies and even the government to fund their day to day needs (expenses) in the short term.
Businesses of all sizes are also pursuing accounts receivable factoring companies because these companies also often offer purchase order refinancing, working capital credit lines, growth or expansion funding, inventory financing and other types of asset based lending where businesses take a loan by pledging their physical assets.
Here are answers to three common questions that must be going through your mind right now: Why should you factor?
Simple. It is easier, faster and in many cases can be cheaper. Once you are accepted or have a relationship with a solid accounts receivable factoring company, you essentially have a revolving line of credit with them. Think about it, if a company factors your invoices once, chances are they will do it again, and again, and again. They win, and most importantly YOU win.
Here is the other thing. You no longer have to worry about who will process accounts receivables at your business. when you factor, you are essentially outsourcing the entire function. Let them worry about it while you worry about growing your business!
What size business can factor?
Any kind really. However factoring is most common with small to medium size businesses as large Corporates have their own alternative capital or funding sources. The answer is actually simpler than that. If you have receivables, you can for sure factor.
When should you consider business accounts receivable factoring?
Do you need cash to grow and expand your business? Do you need more funding to run your day to day operations? Who doesn't?
Are you having trouble or simply don't want to acquire a business or SBA loan? If you answered yes to any of these questions and you feel you are ready to take the next step in your business, then YOU SHOULD consider accounts receivable factoring.
Read more about receivable factoring on Curt Matsen, CPA's website here: http://www.accountsreceivablefactoringhq.com
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