A convertible note is a short-term debt that has an interest or discount rate, a valuation cap, and a maturity date. Investors use convertible notes to invest in startups in the early stages of development. Investors can choose to convert convertible notes into preferred shares on a specific date or event. What Is a Convertible…
All Financing Articles - Page 15
Raising Money From Friends and Family: Loans Or Equity?
Turning to friends and family to fund a business venture is one of the most common forms of small business funding. Raising money from friends and family is less formal than other financing alternatives. Business owners can give away equity to fund their business or take on debt with a friends-and-family loan. What a Friends-and-Family…
10 Surprising Startup Statistics
Starting a business can be a dream come true. As it turns out, you don’t need a degree from Harvard University to do it. If you’re curious about what it takes to have a successful startup, look no further, dear entrepreneur; we’ve compiled some startup statistics that may surprise you.
How to Get Heavy Equipment Financing for Your Business
Common types of heavy equipment financing include loans and leases where the heavy equipment acts as collateral. The word heavy refers not to the weight of the equipment, but its classification. Borrowers should expect to pay between 5% and 12% per year and between 1% and 4% in closing costs to finance heavy equipment. For…
Equipment Lease Calculator
Our equipment lease calculator allows you to estimate the potential costs of an equipment lease by comparing three common lease options: a fair market value lease, $1 buyout lease, and 10% option lease. Estimate your monthly payment and total cost by changing key inputs like the interest rate, down payment, and length of the term….
Series A, B, C & D Funding Rounds Explained
Series A, B, C & D investments represent the first funding rounds that startups receive from investors. Each round involves the issuance of preferred stock sold to investors by a startup, with subsequent letters representing subsequent rounds. Startups use these funding rounds to hire staff, launch products, and market to customers. What Series A, B,…
What Is Preferred Stock vs Common Stock
Preferred stock is like common stock because it offers investors equity in a company. It may be less risky than common stock, however, because preferred stockholders receive profit distributions or liquidated assets in case the business fails before common stockholders. Companies of all sizes issue preferred stock, which institutions with large amounts of capital purchase….
What Is the Prime Rate: How it Works, Definition & Formula
The prime rate is an interest rate set by banks representing the lowest interest rate at which a bank will lend money to its most creditworthy borrowers. It is highly correlated to the Federal Funds Target Rate set by the Federal Reserve. The current prime rate, published by the Wall Street Journal, is 3.25%. Current…
Types of Government Small Business Loans, Requirements & How To Apply
Government small business loans are offered through two agencies, the Small Business Administration and USDA Rural Development. Between these two agencies there are 12 different government funding programs available for small businesses. If you are a small business owner seeking affordable financing, a government-backed loan may be the financing for you. How Government Small Business…
How to Raise Venture Capital Funding: The Ultimate Guide
Venture capital is a form of equity investment that involves newer, high-growth companies raising money from private individuals and firms. In exchange for their investment, venture capital investors receive a partial ownership stake in your company, some control over the company, and significant returns if the company is successful. What Is Venture Capital Funding? Venture…
Small Business Debt Consolidation Calculator
Small businesses struggling with short-term debt and high-interest rates can reduce their monthly payments significantly by consolidating. Our small business debt consolidation calculator helps businesses estimate how much they could potentially save with a consolidation loan. The calculator will show your potential savings based on the interest rate and loan term you enter. A Small…
How to Lease Restaurant Equipment With Bad Credit
If you want to lease restaurant equipment with bad credit, you should expect to pay higher rates than with better credit. Bad credit leases also may not be available on new or premium equipment. However, there are still steps you can take with bad credit to get the equipment you need for your small business….