[Sachip24]

anyone have lenders that take equity in businesses? Have few files all merchants multimillion dollar businesses and looking to give up equity to get amounts they need. Thank you

[Kevin Henry-Seacoast]

anyone have lenders that take equity in businesses? Have few files all merchants multimillion dollar businesses and looking to give up equity to get amounts they need. Thank you

Sachip24-Please be careful.... You must have a license to sell or offer equity.

[Sachip24]

Our firm is licensed.

[Kevin Henry-Seacoast]

Our firm is licensed.

Good

[Sachip24]

On another note Kevin I know we have spoken about your ABL program do you do P/O financing also? Currently have one needs financing that will in turn generate good amount of A/R that you may be able to get an ABL deal on

[Kevin Henry-Seacoast]

On another note Kevin I know we have spoken about your ABL program do you do P/O financing also? Currently have one needs financing that will in turn generate good amount of A/R that you may be able to get an ABL deal on

Hi Sachip,

Sorry for my tardy response. We do not offer PO financing ourselves. We find in most cases that we are able to finance the current AR and include an inventory accommodation that gets the client over the hump. PO financing can be very expensive ..... Our method is much more cost effective.

Best,

Kevin

[abfunders]

P/O financing is best done for startups / those with no A/R (yet) through business credit cards and other unsecured lines of credit....

[RichardGerard]

Typically Lenders like Kevin work with PO Finance entities with an inter-creditor agreement. Several substantial companies, with a cash intensive production/manufacturing cycle, need this capital to be able to create the receivable- not just start ups

[Karen37a]

anyone have lenders that take equity in businesses? Have few files all merchants multimillion dollar businesses and looking to give up equity to get amounts they need. Thank you

You need to speak with an investment banker/hedge fund person who rasises capital... and there are so many deals out there to choose from they are in cherry picking heaven.

Also, the mad rush to bitcoin has again taken more speculative money off the table. These types of deals, along with companies like Lending club will feel a pinch shortly.

[Karen37a]

Also when you want to look for investors it's very different than looking for a loan from your Uncle or grandma.
You can get in trouble with state and federal securities laws no matter how small an investment.

When you give someone a "loan" or line of credit you expect to be paid back. Equity Investing has no recourse if you do not succeed. The money is just spent and gone.

That's why the SEC wants to make sure that investors understand the risk and also they look for people to be in the "accredited investor" category so they can supposedly withstand the loss of capital.

There are exemptions to raise capital BUT if you do not know what you are doing you can wind up having to pay the money back, fined, charged with fraud and lose your ability to ever raise capital going forward.

This is where you sit down with a real Investment Banker, Venture Capital or someone with experience in raising capital ( while staying out of jail or being fined ) or seek out Legal advice to keep you out of hot water ...( a financial atty who specializes in venture capital )

When people realize who is really who. its too late no going back.

[Karen37a]

There is also a concept called "selling away" in investments

That's when a broker recommends or sells investments outside of their firm ( firm they work for does not have knowledge of it nor conducted due diligence on it)

What most people do not know is the Firm is responsible for the broker's recommendations outside of their firm, whether they knew it or not.

The concept is the firm "should have known" the brokers outside activities.The Firm is liable to pay the money back and will be charged with "Failure to supervise"

This rule burned into my brain, so when brokers sit in my office doing whatever they want to do, 1099 or not. I do have supervision and Financial Responsibility for the operations and compliance. I will never get away with "I didn't understand" crap or know who I was working for or with etc etc