Your company's capital structure can be critical for success. On the one hand, paying for everything with cash, if possible, can create a sense of peace and simplicity. You don't have to spend time and energy on negotiating a loan from a lender. You don't have to worry about signing a personal guarantee or giving up collateral to support the loan. There are no loan covenants that need to be met each month, quarter or year. But, using your own cash can constrain the growth of the company and might be the most expensive way to fund your business.
Alternatively, raising capital from a group of equity investors can be an expensive and time-consuming process. If you are successful in raising equity, you now have partners in the business that may or may not see the world similarly. And, you have likely given up some control over how the business is operated, which is especially important when times are tough.
Just like humans, each business is unique and faces its own challenges and is able to leverage its own unique strengths. Therefore, finding the right type of capital for your business is critical. The ideal capital mix usually involves a lot of sweat equity, some cash equity and capital provided by others. Access Business Capital of Arizona is able to help you see through these factors to find the right type of debt capital for your business. We work with conventional lenders, SBA, USDA and alternative lenders across the country.
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