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SME - EQUITY FINANCING INSTEAD OF BANK LOANS

Guest post by: Norbert Knoll von Dornhoff

Article Overview: The perennial issue of small firm financing is once again to the fore as small and medium sized firms (SMEs) are experiencing a challenging financing environment in the aftermath of the global economic and financial crisis. A combination of factors has contributed to a credit crunch for small firms. Businesses struggling with negative effects of the recession are experiencing liquidity problems because of increased bad debts and slower payments by debtors.

SME - EQUITY FINANCING INSTEAD OF BANK LOANS

The provision of credit to SMEs by the banking sector worldwide has decreased due to a number of reasons. Firstly, demand for loans by small firms has fallen as business activity has dropped, and firms seek to deleverage. Secondly, bank lending to the sector has declined because of the poorer financial condition of firms during the economic downturn. Thirdly, restricted liquidity in the interbank markets means that financial institutions must curtail their lending to the sector. Banks seek to accumulate capital reserves rather than advance them to SMEs. Additionally, banks seek to protect their limited capital reserves by investing in securities perceived as less risky, including sovereign and corporate paper.

Firms should become less dependent on bank financing, an issue stressed by Uriel Lynn at the ISBE conference in November. This can be achieved by retaining greater reserves within the firm, and by seeking sources of external private equity rather than debt finance.

We invite you to take advantage of this offer to seek Equity (Venture) Capital with the WUSME - EIED EQUITY CAPITAL Data Bank System and my personal advice and assistance.

The EC Data bank comprises more than 2000 Venture Capitalists offering investment capital in the tune of more than one trillion United States Dollars world wide.

Our offer comprises the following services:

• Review and evaluation of Client’s business plan

• Personal meeting with Client or Skype Conference

• Input of data into the VC data bank system

• Draft of applications for funding

• Collection of funding offers and forwarding to Client

Member will be invited to submit an Executive Summary of the project to be financed and to complete and sign

1. The Application Form

2. The Financing Services Agreement

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Article Tags: capital, eied, entrpeneur, equity, project finance, sme, venture, wusme



Related Forum Posts
label signs jackson thriller executive/seeks investor - ismael records has just signed one of the marketing and promotions executives of MICHAEL JACKSONS THRILLER, BAD and OFF THE WALL ALBUMS as its new president of marketing and promotions. we want to embark on an AMERICAN IDOL TYPE CROSS COUNTRY TALENT SEARCH. winners will have their own CD marketed, promoted , nationally distributed, with radio airplay. our venues will be PAID VENUES with TICKET SALES, along with any investor getting a percentage of all venue and ticket sales , any investor will also receive a percentage of all of our winners CD sales which will again, be distributed nationally, any investor will also receive a percentage of the ISMAEL RECORDS LABEL. PLEASE! NO OFFERS OF LOANS OR BANK LOANS OF ANY KIND!. we will also NOT! PAY ANY UPFRONT FEES. ONLY THE ABOVE PERCENTAGES WILL BE PLACED ON THE TABLE. ISMAEL RECORDS has been up for only 3 years, besides being a recording label it is also an entertainment label. working on the entertainment side the label has been doing a series of talent shows. tyrone ismael ceo/president of ismael records has been networking and steady building alliances for the label. until recently mr ismael has himself refused to take on any artist to the recording part of ismael records, simpley because the label did not really have the sources to push an artist the way a label should. we have seen so many labels with tons of artist but nothing to do with them, the artist are just sitting there. with the contracting of our new marketing and promotions president , ismael records now has sources of manufacturing ,radio airplay, national distribution plus over 25,000 storefronts in which we can now place our artist CDS into besides distributing to the top of the line internet retailers. besides MICHAEL JACKSONS, THRILLER, BAD and OFF THE WALL ALBUMS, our new marketing and promotions president has also marketed and promoted the CDS/ALBUMS of such other great recording stars as LUTHER VANDROSS, TYRESE, ALICIA KEYS, SANTANA, EARTH WIND AND FIRE, BIG MIKE, THE GHETTO BOYS, BOY GEORGE, SADE, THE OJAYS and this is only to name the few, he also has written refrences from such greats as MR QUINCY JONES, SADE, and mr POLLY ANTHONEY of SONY MUSIC, he himself is also former acting vice president of marketing and promotions for EPIC RECORDS. i can not bring myself to ask this executive to bring all that he is already bringing to the table as well as ask him to finance this venture, this is why i am now seeking investors. we are seeking no less than $25,000 in order to get this project out of the starting gate. the TV SHOW AMERICAN IDOL has been one of the top shows for years now, each year you can see the thousands and thousands of hopeful new artist trying to become the next star, there is no other entity out there right now besides AMERICAN IDOL that has the resume of our new executive thats doing what we are now trying to do. this project has LEGS and if pushed out of the starting gate with the proper advertising and promotions it will generate its own capital. any investor will also be receiving the above percentages well after they have received their original investment return, as long as we can keep this project running our investors will receive the above percentages.
Re: SEEKING PRIVATE OR ANGEL INVESTOR - Definitely have a thorough and accurate business plan. In the US, you can get help at SCORE - their website is full of great information and you can check for local chapters. If you would like a book that has all kinds of great information about financing options - this one is very good --- HOW TO GET THE FINANCING FOR YOUR NEW SMALL BUSINESS: INNOVATIVE SOLUTIONS FROM THE EXPERTS WHO DO IT EVERY DAY—WITH CD-ROM This new book will provide you with a road map to securing the financing. The book goes into traditional financing methods and assists the reader in setting up proper financial statements and a proper business plan. It details the differences between debt and equity financing and how and why to use each. Valuation techniques are explained for determining what your business is truly worth. However, the book’s real strength is in explaining alternative and creative methods of financing, such as SBA financing, investor angels, IPOs, limited public offerings and venture capital. Essential resources for finding the detailed information you need are included throughout. Item # 9780910627559 $39.95 Shri
Re: Invoicing - Seeing as I work at a bank, let me provide some insight as to why charging interest on late invoices is becoming increasingly more prevelant. Let's say for example, that BANK A has 10,000 outstanding invoices. Let's approximate (for the sake of being hypothetical) that the average value is $100. That means that the total outstanding cash is around $1,000,000. Now, a bank can make a lot of money through loans and investments off of other money. To handicap a bank's earning potential for the sake of allowing a consumer to pay late is fiscally irresponsible policy. It's like complaining that the banks are taking advantage of you but you're not making your invoices on time. Private firms and companies are in the same predicament. They need capital to pay salaries, expand, etc etc. Charging interest on past due invoices is a way for them to recoup some of the capital they *could* have created by receiving the money *on time*.


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