Raising Money

Written by William Cate


Continued from page 1

A public company rarely gives up significant equity for its Private Placements. Your odds of finding a merchant banker, mutual fund or a group of wealthy investors willing to takerepparttar far lower risks of buying your discounted shares are about one in one hundred. Using our Contact Cost Model, you could contact 1,000 Merchant Bankers, Fund Mangers and Wealthy Investors at a cost of about $29,000. Your odds of raising your risk capital would be about 90% in your favor.

Going Public Problem

The problem with Going Public inrepparttar 111925 States isrepparttar 111926 costs associated with filing your registration statement withrepparttar 111927 U.S. Securities and Exchange Commission. When you factor inrepparttar 111928 at least $1.5 million in registration costs, it's no longer cost effective to go public to raise risk capital. As with private company finance,repparttar 111929 costs of your search for money will exceedrepparttar 111930 risk capital you can raise. It makes no sense to spend over $1.5 million to raise less than one million in risk capital.

There Are Easier, Less Costly Ways

As your consultants, we can suggest a way of going public in America that reduces your costs by 95%. We can suggest a way to go public that reducesrepparttar 111931 time factor by 66%. We can suggest a way to go public that more than doubles your odds of trading your shares inrepparttar 111932 United States. If you use our Going Public Strategy, your Contact Cost Model would be $60,000 to take your company public and you would pay $29,000 to conduct your investor search. Your odds of finding your million dollars in risk capital would be about 90% in your favor. If you compare our solution with that of raise money as a private company, you'll find:

Private Company TacticCosts: $115,000Odds of success: 50/50 Our StrategyCosts: $89,000Odds of success: 90/10

That's 90% in your favor using our strategy!

If you want to use our public company strategy to raise risk capital for your company, email us today. We can arrange to meet you inrepparttar 111933 San Francisco Bay Area. We lecture and travel aroundrepparttar 111934 world and you can arrange to meet us during these trips. We regularly do phone consultations with prospective clients. Email us today.

To contactrepparttar 111935 author, email Beowulfinvestments@Earthlink.net

He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]


Six Ways Under Your Nose To Finance Your Home-Based Business

Written by George A. Parker


Continued from page 1

Personal Credit Lines and Credit Cards

They are convenient, versatile forms of financing. You can borrow and re-borrow up torepparttar line limit as needed.

The negatives: you will pay relatively high interest rates-- rates range from 12% to over 18%;repparttar 111924 minimum monthly payment on many of these arrangements will repayrepparttar 111925 outstanding balance within 42 months; it is easy to dig yourself deep into debt using credit lines and credit card debt; high outstanding balances against your line can negatively impact your personal credit rating.

A Margin Loan

You can use margin loans for purposes other than buying additional securities.

Any margin loan will be secured by your equity shares. Rates are often below prime, applying is relatively easy, and these loans have very flexible repayment terms.

Loans are initially limited to 50% ofrepparttar 111926 purchase price of your equity securities. Loan repayments are triggered whenrepparttar 111927 value of your stock falls belowrepparttar 111928 margin limit.

The negatives: Because borrowings are predicated on volatile stock values, a margin loan can be a risky proposition; if you default in repaying,repparttar 111929 brokerage firm can sell your securities to satisfyrepparttar 111930 loan; an untimely sell-off can have a devastating effect on your portfolio and negative tax consequences.

The only safe way to consider a margin loan to finance your home-based business is to limit advances to a relative low ratio of your stock portfolio value – say, 25% or less.

Most of these financing methods are under your control and don’t require business plans or company financials to qualify. Although each of these methods has risks and disadvantages, so do most external methods of financing. Before proceeding with one of these financing methods, carefully considerrepparttar 111931 potential benefits, risks and consequences. Whatever you decide, it helps to knowrepparttar 111932 options right under your nose.

George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”). Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in equipment financing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: www.ltileasing.com.


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