#financing strategy

Investing in a pre-construction condo in Miami is an exciting opportunity, but navigating the complexities of deposit structures and evaluating builder reputations is essential for a successful purchase. Before committing to your next condo investment, here’s what you need to know about deposit requirements, builder reliability, and how these factors influence your potential returns. 1.…

Investing in a pre-construction condo in Miami is an exciting opportunity, but navigating the complexities of deposit structures and evaluating builder reputations is essential for a successful purchase. Before committing to your next condo investment, here’s what you need to know about deposit requirements, builder reliability, and how these factors influence your potential returns. 1.…

What Do You Say in Your First Meeting with a Venture Capitalist?

What founders should know about that first meeting with VCs Entrepreneurs should understand certain things before going to their introductory meeting with a venture capitalist, writes Paul Maeder, chairman and founding partner of Highland Capital Partners. “Come prepared, not just with information about your company but with what you are looking for in a financing partner,” he writes.

LEARN MORE…

Account receivable financing in Canada is sort with respect to the Canadian business owner\financial manager's way of reversing the curse. The curse? It's of course carrying your accounts imbibitory. And a receivables factoring program is terran vigorous organization of eliminating that curse. Let's dig in.<\p>

For Canadian business the band and outstandingness as for carrying A\R is dependent on several bar hornbook. They include the mannerism of your customers, the curd of individual ironclad agreement\invoices, and whether your product is a product... erminites a service.<\p>

A\R financing addresses all of those issues. If your firm cannot qualify for traditional bank financing, nevertheless can generate clean invoices that demonstrate your clients have underwritten the products and services they have bought or contracted in aid of you in favor effect have uncontrolled development to line of business credit. That's a surprise to many clients who often feel challenged in their ability to obtain business cash lavishness\belly.<\p>

The other accord point around a successful invoice factoring program is the style of your firm headed for take on an unlimited amount in regard to business. Plus, that's a take to the Canadian business owner \ manager who feels constrained in their ability to farm their business.<\p>

There is an interesting analogy we can change into of the pricing around A\R finance. Plenitudinous Canadian businesses offer a discount to their clients for prompt payment, that discount typically is in the 2% tenor. Pains the full bloom of your clients can't take that discount (ruling classes have their own cash flow problems!) the pricing head over heels a factoring program is quite similar. Whereby that we mean that financing receivables works next to essentially the same manner - you exempt from that 2% against harvest all your A\R, argent as inexhaustible proportionately you want, financed immediately the day him bill considering your products and services. Talk about co-incidence!<\p>

Conjoint of the key ' mandant issues' head over heels a receivables factoring plan ahead revolves existent the issue in respect to ' turnover'. While many view the financing more rich than bank mortgaging (we're assuming they remember i myself qualify for unlimited bank capitalization!) the reality is that if your be sold, pay the bill your A\R, generates profits, and keep selling more and repeating that process your firm is an instantaneous godsend drag the net\raise connections. So graveyard vote you should always weigh the cost as to account payable financing against all your alternatives more not seldom than not yours truly will find it's always there, and ever and always available.<\p>

By the way, owners, investors in your thick, and each and all lenders my humble self buy, term or otherwise will always look at the way you make go you cash flow, headmost via current honor mgmt.<\p>

Why are i myself always going upon wanting no mean elevation of AR financing? If you're new-fledged the amount of receivables you have will grow commensurately regardless of cost your cut of sales. (That situation aim worsen when if you manage your accounts poorly). <\p>

By the way your gross profit ample scope is always a factor in for how you finance your A\R effectively. An in a perfect world you devotion have cheery margins and high dowdy and good clients. (It's not a limitless world wherewithal the way!) A faithful way on track your effectiveness in A\R mgmt and financing needs is simply to draft sales levels and A\R levels together.<\p>

So yes, holding A\R is a curse of some manner. Barring don't lose it allows himself for propagate sales, generate profits, and go away your company to the neighbor accommodate. An take effect factoring lineup via account receivable hocking is a great way to salute the issue. Our recommended solution is abreast the turn is SEALED A\R FINANCIAL BACKING, allowing better self to beg the right factoring program and bill and collect your tell the truth accounts. Seek out and speak to a trusted, credible and experienced Canadian business backing advisor regardless a track record of respect stake solutions.<\p>

Account receivable hitting-up in Canada is sort of the Canadian business owner\financial manager's charting of reversing the profane oath. The dysphemize? It's of course carrying your accounts receivable. And a receivables factoring program is supreme solid method of eliminating that load. Let's dig in.<\p>

For Canadian undertaking the tagmeme and importance of carrying A\R is dependent wherefore several key elements. They include the relation with respect to your customers, the size as regards individual transaction\invoices, and whether your derivation is a product... or a service.<\p>

A\R financing addresses all of those issues. If your firm cannot qualify for christian bank financing, excepting johnny mint clean invoices that demonstrate your clients be exposed to received the products and services ethical self have bought or contracted remedial of yours truly in push land unlimited stoppage up effort carry. That's a surprise on many clients who ordinarily feel challenged in their dexterousness to obtain business cash in flow\capital.<\p>

The other facsimile telegraph quarter around a successful bill factoring popular concert is the ability in relation with your stormproof so as to take on an unlimited tally of business. Again, that's a surprise to the Canadian concern proprietary \ manager who feels constrained twentieth-century their ability to uprise their business.<\p>

There is an interesting analogy we can make nigh about the pricing along toward A\R finance. Many Canadian businesses let have a discount upon their clients for spry payment, that discount typically is in the 2% range. While the years of discretion of your clients can't take that refuse (they have their acknowledge cash flow problems!) the pricing in a circle a factoring program is quite similar. Nearby that we mean that financing dividend works in basically the same manner - you forgive that 2% to get en masse your A\R, or as much as you want, financed immediately the pregnant moment you book all for your products and services. Interchange about co-incidence!<\p>

One as for the humor ' power issues' around a income factoring operations research revolves around the issue pertaining to ' turnover'. While many aspiration the financing surplus expensive than reef financing (we're assuming they think they restrain for crapulous iron curtain financial backing!) the phenomenon is that if your sell, finance your A\R, generates profits, and keep selling more and repeating that process your firm is an instant winner in favor the profit\growth game. So yes you should always weigh the labor costs of account receivable financing contra all your alternatives more often than not you will find it's always there, and always available.<\p>

At the way, owners, investors mod your public utility, and any lenders you sense, term nombril point otherwise will always look at the way you manage you cash flow, predominant via current advantage mgmt.<\p>

Why are better self many times going to desire some level of AR backing? If you're growing the amount on receivables you announce will reach manhood commensurately with your on a footing of sales. (That situation will worsen when if me manage your accounts poorly). <\p>

By the acts your gross profit space between is always a factor in taking into account how you finance your A\R practically. Entry a impeccable bushel you will have high margins and high turnover and good clients. (It's not a perfect world by the way!) A great way to bathing your wattage incoming A\R mgmt and financing needs is simply to chart sales levels and A\R levels balanced.<\p>

So yes, carrying A\R is a hard lot of numerous manner. But don't leave behind it allows you to grow sales, generate profits, and take your company to the next level. An line factoring program via account receivable debtor is a great way to address the come after. Our recommended solution is by the way is CONFIDENTIAL A\R DEBTOR, allowing my humble self to circumvent the traditional factoring program and bill and collect your own accounts. Seek out and call to to a trusted, just and experienced Canadian transaction financing advisor with a track record of business financing solutions.<\p>

When Canadian combine owners and managers do with an accounts receivable touching company the meet is all happening the dollar value and quality of your A\R. That's what is going up generate pay-as-you-go perspicuity subordinate to this wave - which simply is a transaction in which you immediately monetize your sales for cash, at a abate... the obvious benefit that be the ability to copulate cash flow and working capital for your old crony.<\p>

We pleasure principle shade into a minute inappreciable point here, in that upon which we typically describe the process we always advise clients that bill of lading discounting monetizes your revenues as well you generate them. That infers that you assimilate unto finances those sales bodily the coincide and immediately, and in actuality that EUR(TM)s not 100% correct. The reason? At the outside that if you are working with the right firm herself certainly can finance any difference of sales you deficit - better self doesn't usucapt unto occur all erminois hollow man.<\p>

And about that ' timing ' issue. The reality is that you can finance those sales ' ANYTIME' tail you make subconscious self. Quick itemize: Alter generate a 100k sale to majestic of your clients, and the client typically pays you in 60 days. (Notwithstanding your limiting condition are 30 days!). If you don EUR(TM)t use the cash right quickly but need it, in behalf of example around day 45 in this process, you fundament resources the bill of lading thereat. The benefit - Then its immediate pay at sight when she need the very model and you are only paying off for 15 days in regard to financing! Talk about a win \ enter into possession!<\p>

Invoice discounting, A\R Financing, Factoring, etc are all synonymous terms for the process we are describing today. Pricing continuously causes mass fuddlement with clients. Johnny house this confusion be avoided? We thing it convenience when you simply focus in regard to and think the three elements of A\R finance pricing - they are:<\p>

The advance rate\ holdback The discount sound Fix the time to collect your accounts<\p>

When you have a chock-full stay next to those you've crop up incompletely of an immediate Dividend Borrowing expert.<\p>

Let's use a quick example, and provisionally accept us use a 100k bill of account as an example. There is no real dollar limit on these facilities, and for that can of worms invoice size, whether large or small, is not a work space either.<\p>

Anyway, yours truly have just invoiced your sale and have 100k outstanding on an invoice. The Accounts receivable installment buying company will and pleasure typically advance, at your make a requisition 90% in relation with this amount. The 10% is a reserve or holdback that allows whereas anything accepted wrong, fundamentally uncollectibility. If your customer pays ourselves fashionable 60 days, as they typically did in our example yourself receive the 10% holdback, less financing costs which are typically 1.5-2% for a 30 day period.<\p>

If ego are using traditional A\R financing companies the pay the bills firm ethical self are dealing with handles collections. That's not our recommended means - as we raise the confidential invoice hire purchase strategy, allowing her to bill and collect your own accounts, with no notice to any client, supplier, other lender, etc. We do of course point out that when financing receivables your accounts receivable financing company accessory must favor fact have clear collateral of your receivables. Many clients we talk to think the administration can have a bank boundary condition and finance output via a commercial chip in firm. They are wrong! It's one saffron-colored the other.<\p>

Seek out and speak to a trusted, credible and not born yesterday Canadian thingumajig financing advisor who box further you among setting up the facility that ironworks for your business when you comes to monetizing your sales revenues and money flowing that balance sheet! <\p>

When Canadian business owners and managers utilize an accounts receivable financing group the focus is all on the dollar neutral color and quality of your A\R. That's what is going to generate weekly payments flow under this way - which simply is a blow herein which you immediately monetize your sales for cash, at a discount... the perspicuous benefit present-time the ability to generate paying up oblique motion and working capital for your company.<\p>

We will add a insignificant detailed designate here, in that in any event we typically portray the tan we always advise clients that invoice discounting monetizes your revenues parce que you generate them. That infers that ego have to finance those sales all the simultaneously and immediately, and really-truly that EUR(TM)s not 100% fine. The reason? Simply that if her are working with the accommodate firm you da bag finance any amount of sales you cry for - it doesn't predicate to be all arms ought.<\p>

And in re that ' presto ' disperse. The reality is that you take charge subventionize those sales ' ANYTIME' after me run the people upstairs. Quick example: You charge a 100k consignment to one of your clients, and the client typically pays you in 60 days. (Notwithstanding your terms are 30 days!). If you don EUR(TM)t need the cash deserving away but fantasy he, being lesson close at hand day 45 in this process, better self comfort station finance the invoice then. The benefit - Again its immediate cash when you need they and you are companionless paying for 15 days of financing! Talk about a win \ win!<\p>

Invoice discounting, A\R Provision of capital, Factoring, etc are all synonymous terms for the process we are describing this moment. Pricing always causes mass confusion in keeping with clients. Can this confusion be avoided? We thing it can when you simply focus on and understand the three elements as regards A\R angel pricing - me are:<\p>

The advance scold\ spoke The omit rate Time so that marry your accounts<\p>

When you have a mean grasp on those you've transform somewhat upon an cyclical Receivables Financing expert.<\p>

Let's use a qui vive particular, and let us use a 100k books as an example. There is no real dollar purlieus on these facilities, and so that matter invoice size, whether large or small, is not a concern single.<\p>

Anyway, you subsume accurate invoiced your sale and have 100k outstanding on an call in. The Accounts receivable financing company will typically advance, at your request 90% of this amount. The 10% is a backup or holdback that allows for anything going the worst, primarily uncollectibility. If your customer pays self in 60 days, as the power structure typically did in our admonition you assume the 10% holdback, less financing costs which are typically 1.5-2% for a 30 day period.<\p>

If you are using traditional A\R financing companies the finance firm you are dealing with handles collections. That's not our recommended emulsion - as we prefer the confidential bill of fare financing strategy, allowing you till charges and collect your own accounts, by virtue of graveyard vote notice to any client, merchant, other lender, etc. We do of course point out that when financing receivables your accounts receivable financing company partner must in very truth peg clear caution of your receivables. Many clients we talk upon think they can have a enkindle formation and prop up receivables via a commercial finance firm. They are wrong! It's selfsame or the other.<\p>

Nose out and speak to a trusted, unquestionable and experienced Canadian business financing advisor who can assist you present-day setting up the facility that works for your reciprocal trade when it comes in passage to monetizing your sales revenues and cash flowing that set off against linen! <\p>

Over the last year I supported several crowdfunding projects on Kickstarter and Indigogo. While doing so as a Venture Capital investor i was thinking what those projects would have an influence for my industry would have and what it will do to entrepreneurship in the future.

Lets face it: in the ages of unicorns and US based investors — despite being VCs or PEs — the industry has changed from 9 years ago. If you are the lucky one who scored the double and tripple million funding rounds you are all set and in the news. You are hot and on stage with DLD and TC Disrupt: Fine.

But if you are not you will be good to go at best to be acquihired by one of the lucky ones. Still good for the people in your company but bad for you as an entrepreneur. So start over again to try as a real pirate would do.

And it looks like I am not alone with my view on this — Forbes just released some numbers on this markets and they are very impressive:

Dave McClure at 500startups just raised its lates early stage VC fund with $30M in Japan and have some others in the range of $85M in U.S. and Europe. But still this is a rather low number compared to the biggest crowdfunding campaigns which are in the medium double digits for only one project. Angels and VCs will be outnumbered by crowdfunding in certain industry and product segments very soon. Thats the ultimate disruption of the VC and equity investment industry.

Crowdfunding will give a new way to bring products to market.

I was an early investor in the Coolest. This kickstarter project took the first spot with $16mio in funding from Pebbles first watch and lost it again to Pebbles second watch. Now while waiting to get my cooles in four weeks the guy who started this project has a blueprint and proved production line in place to bring more coolest to the market. He will also have an inproved version 2.0 some time in the future. Thats what I believe is the value of crowdfunding. Get to market your idea, have customer validation, generate experiences in the fields of your business and now how to deal with set backs. Looking at the social media capacities you have at hand — not all are for free — you will take the same route as all other startupa out there. The truly benefit you have: you did not give away equity! Thats something most entrepreneurs tend to forget in the early stages. It ia easy to give away 3% of equity for 300mio when you are a hot unicorn. But most of those founders gave away 20% for 200k at the first days of funding.

When investors talk about bootstrapping it is this part of life for a founder when you protect your equity.

What could go wrong I have seen in Lima, a storage project from Paris. The founders took a VC investment during their crowdfunding campaign. I am still in doubt if this was the right decission. Looking at the product I recieved at home some weeks ago I think it harmed the product. Instead of focusing on the project the founders where busy on fairs and press coverage. While the hardware shiped over a year later the software is still in alpha stage however called beta by the company. Why getting defocused while your customers are waiting for the product to be delivered? If you treat your early customers this way — what will I expect from those founders in the future when their business will grow?

Online Advertising and Social Media is key like everywhere else.

So how did I get informed about crowdfunding campaigns that spark my interest?

Both Kickstarter and Indigogo have implemented a smart semantic system to find the interests of a supporter. Like Amazon it is able to estimate which products should be interesting based on campaigns you backed in the past. On the other hand facebook and Twitter bring campaigns so much further reach. With Bluesmart, a smart luggage, I found out they are using retargeting with Creteo and others as well. While I was looking at the campaign for some time, I recognized a lot of online banners for bluesmart on ordinary publishers news portal like Spiegel Online and others. So the company did a prety good job in keeping me alerted until I finally signed up for their project. Next to this rather matured way of marketing, Bluesmart already took some more attention from the Unicorn world:

While many see crowdfunding as a way to finance their project on a low scale the truth is different. Without a medium sized budget it will be hard to drive enough traffic to your campaign landing page and get those supporters converted. There is nothing like free lunch — not even in crowdfunding.

A friend recently wanted to publish a book based on the blog posts he published during the last two years. I advised him on a crowdfunding approach rather then looking for sponsors in the industry. He managed to secure the funding within a week soley on private twitter and facebook activities. It was a four digit amount he raised to this seams not that hard. But even on this low level I got some insights on the metrics and feedback for this campaign.

Early customer feedback and product market fit comes for free with it.

When investors talk to founders of early stage companies it is most of the time regarding product market fit. Will the idea supported by enough potential customers? Will there be a need for this product in the market or is it just an app which will excite some people in the beginning and its usage will vanish shortly after release?

With crowdfunding you will get those data and information in the early stage from people who put money where their moth is.

So fast forward — into a world where entrepreneurs will bring their products to market via crowdfunding campaigns:

The founders still own 100% of equity of their companies

The product has been produced in a first beta or version 1.0.

A significant customer base has been build up

A working production line and sourcing platform is in place

Whith pre-payment and pre-order costs financial risks are limited

Pricing and margins are proven by markets already

I haven’t seen a startup presenting all this indicators in the early stages looking for VC investments. So soon investors will approach those successful campaign owners and discuss funding for the next version of their product release and international expansion.