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Determining if a Business Plan or Regulation D PPM is your best option.

Written by: Roger Trivelli

Article Overview: The one constant in the life of your small business will be the need for a cash infusion to jump start sales, expand into new markets, or continue to sustain growth. While there are a multitude of financing sources of funding available to small business owners, each source has its limitations and requirements.

Determining if a Business Plan or Regulation D PPM is your best option.

Commercial bank loans are often intended for businesses that have been around and have shown a steady stream of profitability. SBA loans are geared towards new business, but distances itself from businesses requiring an excess of $200,000 and is contingent on collateral and credit checks. Regulation D Private placements are an attractive alternative for new and growing companies, as they rely on your business model, investment return and growth projections, with little to no consideration on personal credit history.

* Business Plans: Ideal for commercial bank loans (existing businesses), VC Firm/Angel Submissions, or SBA assistance (new businesses). For all other needs where you will be pitching individual investors we recommend Regulation D private placement memorandums to raise capital requirements.

* Regulation D Private Placements: Private placement or private investment capital, is money invested in your company usually from private investors in the form of stocks and sometimes bonds. In the United States, private placement often does not need to be registered with the Securities Exchange Commission. Regulation D is the most popular form of non-public private placement.

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Article Tags: commercial bank loans, Private placement, Regulation D Private placements, SBA



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