The Cost of Raising Money

Written by William Cate


Continued from page 1

You can go public inrepparttar States, without doing an IPO. Doing so may reduce your registration costs, it may reducerepparttar 112149 time it takes to trade your shares or it can improverepparttar 112150 odds of your becoming a public company. The reason to consider this option is thatrepparttar 112151 odds of raising money as a public company increase to an average of around 1-in-100. The improved odds relate torepparttar 112152 facts that (1) you are offering investors liquidity since they can sell their shares torepparttar 112153 public and (2) leverage, in thatrepparttar 112154 shares usually command a better price than that reflected by your public company's balance sheet.

Whenever you employ someone to help you, you must pay him or her. Someone raising money for your private company will want to gross between 25% and 30% ofrepparttar 112155 money they raise for you. They will expect their overhead costs paid in advance. While there are tens of thousands of these "Boiler Room" brokers, most of them operate outside of U.S. Law. Their successful funding percentage is usually low.

Most business owners and entrepreneurs think there is a Fairy Godmother who funds businesses, without regard to logic or reality. They spend years searching for this mythical figure. She doesn't exist. So instead, business-funding seekers settle for dealing with fools with money.

In general, businesses start on a shoestring. Successful businesses are oriented to making money from their conception. They grow by re-investment of their profits. Ifrepparttar 112156 company's management is wise,repparttar 112157 company goes public to use their shares in acquiring cash producing assets. The insiders exit by having their public company acquired by industry giants. The only role of outside investors is to augment acquisitions with cash and company stock.

Seeking risk capital to start a business is an exercise in fools searching for other fools and paying professionals to makerepparttar 112158 hunt an occasional success. If you are going to take this path, be prepared to payrepparttar 112159 toll and acceptrepparttar 112160 risks.

Aboutrepparttar 112161 Author: William Cate is an Equity Finance Consultant and Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/]. In his Venture Capital Profits, he offers a low cost way to raise money and grow your company into a multinational corporation.



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/]


What is a Bridging Loan?

Written by John Mussi


Continued from page 1

The downside torepparttar fast nature of these types of loan is thatrepparttar 112148 interest rates charged on them are relatively high, this is because not only are they short-term and for large amounts, butrepparttar 112149 risks torepparttar 112150 lenders of non-payment are higher than for other circumstances and this is taken into account whenrepparttar 112151 loan rates are calculated. Althoughrepparttar 112152 rates are high when compared to other loans available onrepparttar 112153 market, when you take into accountrepparttar 112154 short amount of time over which this interest is charged, andrepparttar 112155 benefits that a bridging loan can bring,repparttar 112156 costs are reasonable.

Bridging loans are designed to provide you withrepparttar 112157 equity from your current home in order to make your new purchase, before you are able to sell your own property. The loan is secured againstrepparttar 112158 home that you are selling inrepparttar 112159 form of a mortgage or second mortgage, and will allow you in general to release around 65% ofrepparttar 112160 property's value. With these funds you are then in a position to completerepparttar 112161 purchase ofrepparttar 112162 new property, and once your old property sells you can clearrepparttar 112163 bridging loan. If you are considering such a loan, you should be confident of a sale, and that you will be able to clearrepparttar 112164 debt within six months, asrepparttar 112165 high interest rates are something that you do not want to be paying long-term.

Bridging loans are available torepparttar 112166 people that have found it more difficult to get mortgages, such as those with an adverse credit rating. This enables these people to build a track record before applying forrepparttar 112167 traditional mortgage. Bridging loans can take from 48 hours atrepparttar 112168 shortest to around ten days ifrepparttar 112169 circumstances are more complex.

Despiterepparttar 112170 costs, bridging loans are very popular, after all if you have spent a lot of time searching forrepparttar 112171 perfect property you will not want to miss out on it because of a relatively short delay inrepparttar 112172 sale of your current property. It is in these cases where bridging loans can prove invaluable, enabling you to securerepparttar 112173 sale ofrepparttar 112174 home that you want, and concentrate onrepparttar 112175 sale of your property at a later date.

Bridging loans can be provided for:

Residential property

Commercial property

Land

New build

Renovations or refurbishment

Speculative properties

Conversions

Overseas property

You may freely reprint this article providedrepparttar 112176 author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online loans via the http://www.directonlineloans.co.uk website.




    <Back to Page 1
 
ImproveHomeLife.com © 2005
Terms of Use