financing

Tag: financing

Alternative Forms of Financing

It happens all the time. Companies need capital, but they aren’t bankable. Banks or other financial institutions will not touch them because they are either too risky, not able to meet covenants, or it just doesn’t work out for some reason. So, where do those companies go? They need to look at alternative forms of

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What is Cash Flow?

See also: Free Cash Flow Definition How Growth Affects Cash Flow Why Use a 13-Week Cash Flow Report as a Management Tool? Why You Need to Have a 13-Week Cash Flow Report What is Cash Flow? Cash flow is a term describing the money into and out of a business. This includes all transactions that

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Why Valuation Matters

The other day, a client asked why valuation matters. It seems like a lengthy process that is complex and differs in each case. You see, I didn’t respond in an elaborate explanation of the different methods of valuation. Instead, I start off by saying that life is very unpredictable. Have you ever experienced a life-altering

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Business Accelerator

See also: Dilemma of Financing a Start Up Company Why do most startups fail? Financing a Startup Business Accelerator Definition The business accelerator definition is a program that includes mentorship, education, and typically a “demo day” where companies are able to pitch their business to the business community. This business community is typically comprised of

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Key Elements When Seeking Financing

This past week, one of my clients met with a banker to develop a new banking relationship. He hands the banker the company’s financial statements, expecting the banker to look at the income statement. Instead, the banker flips to the back of the financial statements to look over the balance sheet. As the coach, I

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How long can a company lose money without running out of cash?

Only when the tide goes out do you discover who’s been swimming naked. – Warren Buffet Is the Houston economy’s metaphorical “tide” going out?  It’s hard to say, but some businesses are definitely feeling a bit “naked” these days.  They may not even realize the peril they’re in because they still have positive cash flow despite the fact they’re losing money.  This begs

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5 Ways a CFO Adds Value

Check out the following 5 ways a CFO adds value and how they can take their role to the next level – gaining more respect, increasing salary, etc. Ways a CFO Adds Value 1.  The CFO Enables the Company to Grow Faster CFO responsibilities include the following: Formulating and implementing financial strategies Managing the company’s

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What is a Term Sheet?

See Also: Other Peoples Money Angel Investor Venture Capital 5 Cs of Credit Working Capital What is a Term Sheet? What is a term sheet? It contains the terms of an investment made by a venture capital firm. It is a summary of the legal and financial terms of a proposed deal. Basically it is a

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What Does A Lender Want To Know?

See Also: Relationship with Your Lender Finding the Right Lender The Dilemma of Financing a Start-up Company Every Business has a Funding Source, Few have a Lender Required Rate of Return Venture Capital What Does A Lender Want To Know? I had a conversation with a prospect that needed working capital funding. He asked, “What

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What Lenders Look At?

See Also: Relationship With Your Lender What Does a Lender Want to Know Don’t Tell Your Lender Everything Due Diligence on Lenders Finding the Right Lender What Lenders Look At? I recently spoke to students at the University of Houston in the Wolff Center for Entrepreneurship on the topic of Dealing with Lenders. During the

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7 C’s of Banking

See Also: 5 Cs of Credit Line of Credit Credit Rating Agencies How Important is Personal Credit in Negotiating a Commercial Loan? Improve Your Credit Score 7 C’s of Banking Every knows the 5 C’s of Banking. But what are the 7 C’s of Banking? Recently, I spoke to students at the University of Houston

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Vendor Finance

See Also: Time Saving Tip for Filing Vendor Invoices The Dilemma of Financing a Start Up Company Mezzanine Debt Financing Commercial Agents Vendor Finance Definition The vendor finance definition is the receiving of financing for an asset from the provider of the asset. Vendor finance is a common way to receive an asset before having the

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