Ideas on getting that needed capital
Article Abstract:
Business owners have to remember some points when raising capital. They should not be surprised or disappointed if they are rejected by most lenders. They should also avoid grabbing the first deal that comes along but first study the offer objectively to ensure a fair deal. In case many candidates are attracted to the proposal, owners may consider changing their offer a little bit. Excessive shopping around should be avoided because it may turn off the financial community. Finally, an intermediary may be hired to arrange a loan.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1995
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Ideas on getting that needed capital
Article Abstract:
The keys to an effective financing proposal include avoiding excessive shopping around, patience in looking for capital and collecting several financing options. Business owners are also advised to further study the first deal that is being offered before grabbing it, ensuring that a fair negotiation between a lender/investor is met. Reconsidering the needs to determine whether to ask for more money or concessions from the lender is needed in situations when the financing proposal seems to attract many prospects.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1998
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How to compute the true cost of a loan
Article Abstract:
Borrowers usually consider only the interest rate in assessing loan packages and selecting lenders. This is a mistake because extra charges related to the loans can significantly raise their total and overall cost. In other words, the interest rate is only one factor to be considered. Other variables to note are the discounted notes, compensating balances, commitment fees and combined effect. All these affect the effective cost of capital.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
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