Contracts when raising investor equityQuestion How do I obtain investor financing without losing equity in the signed contracts I already have?
Answer Wait -- if you have contracts, perhaps you don't need investors. Your signed contracts may be "bankable." You may be able to use these contracts as collateral to get a bank loan.
If a bank loan is not possible or desirable, you're back to the investor option, which usually means you have to give up equity in your business, which includes its financial condition, including outstanding contracts. If you need capital infusion, now is not the time to get greedy.
Brain Trust contributor:
Author of Hurdle: The Book on Business Planning
President, Palo Alto Software
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz |
AskJim ID: 155
|





