Generally this information applies to established companies. There are two sorts of financing that can be obtained- debt or equity.
Commercial Debt Financing
- Revolving lines of credit
- Factoring (conventional and specialized)
- Term loans
- Equipment and real estate loans
- Acquisition financing
Equity Investment Funding
To obtain public financing, the organization needs to have established a strong management team- both experience and expertise. Generally, there needs to be a significant management ownership position (which will become diluted upon the completion of financing).
The company’s cash flow should be growing (stable is acceptable) and there must be defined markets and distribution in existence and delineated for the company.
Equity desired is typically $ 5 to $ 20 million; repayment terms of moderate duration (3 to 5 years).