Amitabh Verma’s Post

Getting external financing to fund your company’s growth will depend on your plans, how willing you are to give away a stake, and, therefore, control in the business, your eligibility, and the short-term or long-term funding you need. How can you finance your business growth? ✅ Bank finance ✅ Angel investors and venture capitalists ✅ Alternative investment markets such as crowdfunding 🌟Get expert help To make it more likely your company is considered eligible for funding, it is advisable to get expert help. For example, The CFO Centre has part-time CFOs who have trusted partners within banks and major financial institutions. In addition, they can look at angel investors, VCs, and alternative lending markets for funding on behalf of their clients. We can help and guide you through every step of the funding preparation and application process. https://bit.ly/3z9blYO #funding #businessfunding #BusinessFinance #CashReserve #FinancialResilience #StrategicGrowth #sme #PartTimeCFO #BusinessGrowth #FinancialExpertise #ExitStrategy #CashFlowManagement #BusinessHealth #SolveCashFlowProblems

Securing external financing for your company's growth depends on several factors and I am here to help guide you through every step of the funding preparation and application process. What factors need considering: 📌 your plans 📌 your willingness to give up a stake (and thus control) in the business 📌 your eligibility 📌 and whether you need short-term or long-term funding. #fractionalcfo #vicbusiness #businessfunding

The Internal Rate of Return (IRR) is a key metric in investing, but its interpretation can be complex due to different components influencing it. Here’s a breakdown of the IRR components: 1. Operational Improvement: This arises from enhancements like cost reductions and efficiency gains within the business. 2. Strategic Enhancement: This involves improvements to the company's strategy, such as market repositioning or product innovation. 3. Leverage: This is the return derived from using debt, common in private equity (PE) deals. Understanding these components helps in distinguishing between value created through management and returns driven by financial engineering. This approach can also be applied to evaluate corporate projects and assess portfolio performance. #vc #startups https://lnkd.in/gXYBhHW4

Getting external financing to fund your company’s growth will depend on your plans, how willing you are to give away a stake, and, therefore, control in the business, your eligibility, and the short-term or long-term funding you need. How can you finance your business growth? ✅ Bank finance ✅ Angel investors and venture capitalists ✅ Alternative investment markets such as crowdfunding 🌟Get expert help To make it more likely your company is considered eligible for funding, it is advisable to get expert help. For example, The CFO Centre has part-time CFOs who have trusted partners within banks and major financial institutions. In addition, they can look at angel investors, VCs, and alternative lending markets for funding on behalf of their clients. We can help and guide you through every step of the funding preparation and application process. https://bit.ly/3xzQFZs #funding #businessfunding #BusinessFinance #CashReserve #FinancialResilience #StrategicGrowth #sme #PartTimeCFO #BusinessGrowth #FinancialExpertise #ExitStrategy #CashFlowManagement #BusinessHealth #SolveCashFlowProblems

💰Getting external financing to fund your company’s growth will depend on your plans. To make it more likely your company is considered eligible for funding, it is advisable to get expert help. For example, The CFO Centre has part-time CFOs who have trusted partners within banks and major financial institutions. In addition, they can look at angel investors, VCs, and alternative lending markets for funding on your behalf. ✅ We can help and guide you through every step of the funding preparation and application process. #BusinessFinance #CashReserve #FinancialResilience #StrategicGrowth #sme #PartTimeCFO #BusinessGrowth #FinancialExpertise #ExitStrategy #CashFlowManagement #BusinessHealth #SolveCashFlowProblems https://bit.ly/3z9blYO

The Art of Decision-Making: Choosing the Right #Funding Path for Your #Startup In the world of startups, the journey from idea to execution is thrilling yet fraught with challenges. One of the most critical decisions founders face is how to fund their venture. Should you pursue equity financing, or is debt financing the better route? Understanding the Landscape #Equity Financing involves raising capital by selling shares of your company. This means inviting investors to become partial owners, providing you with the cash you need to grow without the immediate pressure of #repayments. Think of it as a partnership where #investors share in your success—and your risks. #Debt Financing, on the other hand, means borrowing money that you'll need to pay back with interest. This route allows you to retain complete control over your business but comes with the obligation of regular repayments. For many founders, this creates a tension between cash flow #management and business growth. Pros and Cons Equity Financing: The Ups and Downs Pros: No Repayment Pressure: You won’t owe any monthly payments, allowing for more #flexibility in cash flow. Shared Risk: Investors take on some of the #financial #risks, which can relieve pressure during tough times. Access to Expertise: Many #investors offer more than just capital; they bring valuable industry insights and networks. Cons: Dilution of Ownership: Bringing on investors means giving away a portion of your company, which can feel like losing control. High Expectations: Investors often seek rapid growth, which can create added pressure to perform. Debt Financing: Weighing the Risks Pros: Maintain Ownership: You keep complete control over your business decisions. Tax Benefits: Interest payments on loans can often be deducted from taxes, improving your financial outlook. Predictability: With fixed repayment terms, you can forecast your financial obligations more easily. Cons: Repayment Obligations: Regular payments can strain cash flow, especially in the early stages of your business. Risk of Default: Missing payments can damage your credit rating and potentially lead to bankruptcy. Making the Right Choice:- So, how do you decide between equity and debt? Here are some considerations to guide your decision: 1.    Current Financial Health 2.    Growth Stage 3.    Market Conditions 4.    Personal Risk Tolerance Whether you decide to share your journey with investors or maintain complete control through loans, remember: the right funding strategy is the one that supports your mission and enables you to thrive. Are you #raising funds for your #fintech? Lets connect.

BDCs were created to provide small and growing companies access to capital and to enable private equity funds to access public capital markets. Under the legislation, a BDC must invest at least 70% of its assets in nonpublic US companies with market values of less than $250 million. Moreover, like REITs, as long as 90% or more of the BDC's income is distributed to investors, a BDC is not taxed at the corporate level. Although BDCs are allowed to invest in the capital structure, the vast majority of the investment has been debt because BDCs typically leverage their equity with debt (up to 2X their equity), and fixed-income investing supports their debt obligations. #BusinessDevelopmentCompany

Explore the key differences between debt vs. equity funding in our latest blog. Learn about each option's benefits, risks, and ideal use cases to make informed financial decisions for your business. #DebtFunding #EquityFunding #BusinessFinance #startups Link: https://shorturl.at/XTyNC

🔍 Business Financing: A Roadmap to Fuel Business Growth! In a bustling city, entrepreneurs start their businesses with big dreams and solid plans. They often use their own savings and help from family and friends to get started. As their businesses grow, they need more money to keep expanding. At first, they might look for angel investors or crowdfunding, which are less risky ways to get funds while still keeping control of their companies. Once their businesses are more stable and well-known, they might go for venture capital, which is riskier but can help them grow faster and capture a larger market share. As their businesses continue to mature, they often turn to traditional sources like bank loans and credit lines to manage daily operations and cover short-term financial needs. For bigger goals like buying other companies or expanding significantly, mezzanine financing can be used, which is a mix of debt and equity. Making these financial decisions involves carefully weighing the risks and potential benefits. From Low-Risk/Low-Return to High-Risk/High-Return, here are the key sources of capital to consider for your business’s expansion, acquisition, or exit strategy: 📊 Key Financing Strategies Based on Your Business Needs: 1️⃣ Equity Financing 2️⃣ Debt Financing 3️⃣ Hybrid Instruments 4️⃣ Internal Financing 5️⃣ Government and Institutional Financing 6️⃣ Trade Financing 7️⃣ Strategic Alliances and Joint Ventures 8️⃣ Off-Balance-Sheet Financing 9️⃣ Asset-Based Financing 🔟 Foreign Exchange and Hedging Strategies Evaluate these factors carefully to align with the optimal funding source for your unique needs. 🧩💡 #BusinessGrowth #FinancingStrategies #CapitalFunding #BusinessExpansion #RiskManagement #Finance #Moneymatter #Funding

Bootstrapping, Equity Funding, or Borrowing—Where’s the Best Place to Find Capital for My Business? SCORE Mentors CLICK TO LEARN MORE https://bit.ly/3YME3Yu #smallbusinessstrong