“I need financing because we don’t seem to have enough money in our business”. If we had a penny for every time we heard this…
We recently were approached by a medium sized business that had plans of going public right before the economic down turn. They expanded their facilities and had spend hundreds of thousands of dollars upgrading their equipment and staff. They did not end up going public and ending up taking on a lot of private debt to cover their costs.It has been a few years now however they have been able to keep their private debt current and are now in a position to find alternative options.
Bridge Capital will end up replacing their private debt with a Traditional Bank and will most likely provide them with a $1,500,000 loan funded by investors to help them purchase and sell the product they process. In six months time we will refinance the investors with a bank line based on the history of how the business used the private loan.It doesn’t have to be painful to get capital but certainly having a plan or some goals is the first step.
Many small to medium sized businesses that have made it this far will most likely be able to stay in the market. The critical next step for them is to determine what their business looks like today, what is should look like based on healthy benchmarks and where they want to go. Having a plan is always the first step and capital is always available for a good plan.
It takes as much energy to wish as it does to plan – Eleanor Roosevelt
Check out our Business Diagnostic to learn more about how we may be able to help your business do more.