Articles about Business financing
These are the most common loan security agreements:
Chattel mortgage
A mortgage on specific assets other than land and buildings. A lien charge against the title is registered with the County or State.
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How do investors evaluate a proposal? Which criteria are important and in what order? Here’s an overview of criteria used by angel investors and venture capitalists.
When you have a great idea but no money to fund your start-up, a loan guaranteed by the U.S. Small Business Administration (SBA) can make the difference between going ahead or not. Since the government is providing the guarantee in case of default, banks and other lenders will make loans they otherwise wouldn’t.
By Peter Nunes d’Agrella
The solvency of the company indicates that the company can fulfill its obligations on the longer term. By calculating the ratios between total assets and total liabilities and between the proprietary and foreign capital a clear picture can be formed of the relative proportions.
Bondable
This means that the contractor’s capital, character & capacity have been analyzed by a surety underwriter, and that the surety underwriter has determined that the contractor can perform certain types of work within established parameters. Based upon that determination, a surety company who must be listed in the U.S. Treasury Department’s list of acceptable sureties, will issue surety bonds guaranteeing the contractors performance and/or payments within the resolved guidelines.
Going Public – IPO (Initial Public Offering)
by PlanMagic Corporation
Public markets used to be available only to larger companies with a long history of profitability. Nowadays a variety of companies with varying degrees of profitability and revenue growth may be candidates for public financing depending mainly on future prospects. Access to capital growth through public markets offers greater access to capital, but many promising small companies cannot obtain funding because they are private. Without funding though, they can’t hope to grow to the size and scale that would allow them to go public. Because of this hopeless cycle, many will turn to venture capitalists, angel investors, bank loans or SBA secured loans for that initial cash injection. And then the road to going public may be opened.
If the company has never sold stock before it is known as an Initial Public Offering (IPO). A company can only have one Initial Public Offering (IPO). If the corporation has sold stock before, it is known as a Primary Offering. A company can have many Primary Offerings. When a company needs to raise capital, they issue debt securities (bonds) or by selling stock (equity).
There are in general three ways to go public:
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Market indicators (indices)
The averages that are available as indicators or indices indicate the general health of stock prices. If the economy is doing well then prices of stocks as a group tend to rise. If it is not doing so well prices as a group tend to fall. The averages are there to show you these tendencies. If a specific stock is going down while the market as a whole is going up, or if a stock is going up, but is rising faster than the market as a whole, that tells you something about the stock involved.
Market indexes are therefore useful for gauging the performance of an investment portfolio over time. Select the most appropriate index to serve as your benchmark.