How to raise Company Capital ?
How can a Private Company Raise Capital of $3 Million to Billions
If you are an entrepreneur looking to raise capital for your private company you should be aware that getting that first round of funding is often the most difficult, and lenders want to see that you’re serious.
Whether it’s a retail store, food service establishment, B2B service, real estate or any other private company, capital is an essential component of a successful business.
Getting a company off the ground and expanding it requires money, and raising the right kind of capital is still a major difficulty. The lack of capital is a barrier to growth that can rarely be overcome by resource only to family, friends or business angels.
What type of funding options are available to a private company?
While funding options for private companies are numerous, each choice comes with various stipulations:
Money from personal savings
Friends and family
Bank loans
Private equity through angel investors
Venture capitalists
The most common source of startup capital is the business owner himself in the form of credit card advances, home equity loans, and loans from family members.
When these sources are exhausted, entrepreneurs usually seek capital from private sources such as commercial and investment banks, groups established by private investors, wealthy individuals, and venture capital funds.
Their proposed investment is usually styled in the form of debt, equity, or a combination of each:
Debt - The most common form of capital used by startups, secured by the assets of the company including the possible personal guarantee of the owners. While the interest rate on borrowed money may be high, using debt allows you to maintain 100% ownership.
Equity - Investors become owners of the business with the entrepreneur and the amount of ownership held by each is dependent upon a negotiation, which in turn is based upon the funds invested and the agreed-upon value of the business.
What do you need to get funding
The key in raising capital for your private company is getting investors to believe in your story, to buy into your vision, and to back your management team.
Debt capital can be quicker and less costly than raising equity because there are fewer terms to negotiate, a correspondingly shorter documentation process, and less legal work.
Raising Capital Pre-Qualification Questionnaire:
How much funding are you seeking?
Do you have a 2-10 page Executive Summary? - Be concise. Executive Overview/Summary; should not exceed 5-10 pages. (expressed in English and in U.S. Dollars)
How much cash money have you already invested or have available to be invested in this project?
Do you have a clear purpose for the Use of Funds?
How much time from the funding will it take until your company/project will reach stabilized positive cash flow? - Clearly, state the length of time from funding that it will take until the company will reach stabilized positive cash flow.
Do you have a 10-year projected financial pro-forma - totals only (just Sales, Expenses. Net Operating Income) in Excel?
When do you want to get started?
Entrepreneurs should always raise more money than they need, so they can plan for the unforeseeable. That includes anything from a stock market crash or outlandish expenses to an opportunity you couldn’t predict in a market that didn't exist when you started out.
If you are serious about securing funding, please send us your project details and Executive Summary to info@swissfinpartners.com and one of our investment consultants with many years of experience in insurance, securities and finance will review your documents and will help you and your business to get funded.
The minimum loan we can arrange outside the USA and Canada is $5 million USD.
As for the project locations, all countries worldwide with the exception of armed conflict zones and countries listed on the United Nations Security Council Sanctions List are acceptable.
We guarantee absolute confidentiality and anonymity for each and every consulting client. We do not share names, numbers, or information regarding any of our clients or anything about their businesses – ever! Nor do we provide a listing of past or current consulting clients, so as to be sure to protect their rights and privacy.
