CAPITAL - FUNDING
What to Expect
BAM provides various resources to assist in lending while meeting the prerequisites. In addition, the availability of capital funding enables our solution providers to engage as captial lenders or equity holders to the business, advancing long-term growth. Offering diverse lending opportunities integrates various options, from retained earnings, to equity capital. With experts’ advice presenting a comprehensive approach to evaluating options, startups and growth-driven businesses can engage with questions and concerns. The opportunity enables clients with a strategy to increase profits and operational efficiency, focusing on expanding inventories while boosting cash flow.
Solution Providers
Garry Crain, MHA
Medical Discovery
Healthcare
Innovation Initiatives
Pharmacy
Chairman of Monia
Investor
Amber Prieto
Commercial Lending
Finance Evaluations
Commercial Developments
Risk Management
Melloine Fraley
Frost Bank
Attorney Loan
Federal Regulations
SBA Perferred
Financial Analyst
Kalah Sprabeary
Alternative Financing
Broker/Direct Lender
Multiple Industries
Custom Funding
Financial Planning
John James, MPA
Chief Executive Officer
City of Midalnd Council
President MDC
Multi-Businesses
Investor
Review More
Erica Lujan Belanger
Truist Bank
Financial Goals
Small Business Expertise
Market Knowledge
Andrew Flores
Momentum Bank
Senior Positions
Unique Expertise
Equipment Financing
Commercial Real Estate
SBA Perferred
Sarah Stredic
Financial Factoring
Financial Solutions
Financial Credit Board
M-Squad Ambassador
Financial Planning
Venture Capital
Seeking a VC can assist in large amounts of capital and enable risk management support. The benefits of a VC are relevant to providing a startup with valuable sources, experience, and guidance while collaborating on vital decisions, including financial and human resources. The partnership doesn’t necessarily require monthly payments or committing personal assets; however, the process can usually take time to formulate a decision applicable to matching the investor’s portfolio.
There are a few disadvantages, including the founder ownership stake being reduced and funding, in many cases, being relatively scarce and difficult to obtain. Investors often require a business-structured C-corporation to enable legal flexibility while barred from investing in other entities. The partnership requires a formal reporting structure to include a Board of Directors.
Examples:
Seed funding | Early-Stage Capital | Late-Stage Funding | Expansion Captial | Bridge Financing (typically to locate a Merger or Acquisition opportunity or Enable a Stock Offering through Public Financing.)
Local Angel Funding - Investors
The benefits of connecting with local investors relate to the commonality of building a business community and creating relationships driven by goodwill. Many startups remain financially strapped, and a local investor can help start or expand a business, creating jobs and increasing prosperity while overcoming financial obstacles. The expertise offers valuable insight and provides essential motivation and inspiration to improve stakeholder confidence.
Today, most loans require repayment whether the business succeeds or fails. When utilizing a local investor, the business owner is not responsible for reimbursement if the venture fails. The option is an alternative to bank loans and supplementary loan sources. Although investors may not be concerned with credit scores or financial history, they remain focused on a market guarantee, growth, and market size to ensure return on investment (ROI). The business must exemplify growth without minimum assumptions before the investor accepts the risk.
It is always a situation where an investor provides the money only to expect a share of the profits. But, unfortunately, the outcome drives equal shares of profits or ownership, preventing the owner from becoming successful as BAM continually reminds those seeking investors - how much are you willing to give up to receive the required capital?
Types:
Affiliated - one who already has a relationship with you
Nonaffiliated - one that doesn’t have or had interaction with the company or startup.
Examples:
Family members | Friends | Idea Investor | Archangel (Impressive Track Record with Startups or Early-Stage Ventures.)
Banking Resource Partners
Selecting one of our banking partners enables the advantage of receiving a capital injection to boost cash flow without relinquishing control. The benefit of acquiring capital is relevant to seeding a startup while the ownership remains and personal wealth stays protected without bootstrapping personal savings. Many advantages include the following:
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Low-interest rates.
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Evaluation of terms.
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Flexibility without rules dictating capital distribution.
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The benefit of not releasing equity to achieve a bank loan.
For most startups, early-stage, or growth-driven businesses, capital infusion typically focuses on sustainability and scalability, requiring cash flow to expand vendor choice, advance sales volumes, and increase inventory. However, the real benefit is integrating various financial programs to enable buying power and flexibility to widen profit margins.
Examples:
Typically a Bank | Enables Financial Products or infusion
Financial Capital
When developing financial projections, the evaluation process enables a view that establishes the business forecast from rooted facts. The benefits drive growth from considering business goals, budgeting, and controlling cash flow to discovering full profit potential. The approach empowers the framework to project financing requirements, time elements, and the amount of capital to increase profitability. Such accumulation of data facilitates the ability to analyze and formulate predictable growth, underlining cash flows, pricing impact, and altering production.
The purpose of financial capital is to purchase more equipment, buildings, or materials and measure them in terms of monetary value. Capital assets can include cash and investments listed on the balance sheet and consider an estimated amount of money needed to cover losses from unexpected risk. Often, financial capital is utilized to facilitate raises, increase dividends, or the bottom line. It enables the measurement of the cost associated with borrowing or raising from investors to equity financing.
Outcome fosters the ability to measure projected income, estimated sales, price of product/service, and significant financial ratios for calculating profit compared to net earnings and return on net worth. In addition, developing the projections cultivates a detailed forecast applicable to cash inflows and outlays while creating income and balance sheets to build a strategic business plan.
Examples:
Debt | Equity | Working Capital | Trading Capital - used by brokerages and other types of financial institutions.
Equity Capital
The offering of equity financing stimulates a no-debt, no-obligation repayment. Such an opportunity provides a low-risk option if acquiring a loan. Investors typically pursue a return on investment rather than a repayment on a loan while discarding additional financial burdens. Still, the price tag requires a more significant asset or ownership to secure the acquisition. The truth about equity financing can be risky if the preferred investor expects a healthy profit and decides to negotiate for more reasonable equity or divest completely.
In most cases, the company should be structured as a cooperation to raise money by selling new shares of stock. Commonly referred to as equity risk when describing high yield, dividends, value, growth, and volatility. Other means include investing in sales while creating a profit from opportunities presented in the market requiring borrowing funds to seize the moment.
Examples:
Public Equity | Real Estate Equity | Private Equity (Public and Private are typically structured in the form of shares of stock).
Debt Capital
Debt Capital nourishes a unique advantage as it does not dilute the company’s ownership, unlike equity. The financial benefit is relevant to a tax benefit and low-interest rates compared to other types of financing while offering a more secure source. The utilization strategy is appropriate to leverage a small amount of money and merge it into a more significant sum that promotes rapid growth that otherwise seems incomprehensible. The funds raised through borrowing expect repayment equal to a specific time interval. Indeed, debt capital has a cost associated with significate interest other than a hidden cost compared to equity because of the risk.
Investors crave companies who are without debt, establishing a better investment. However, debt has an actual cost pertinent to the interest payable. For most, interest costs can be deducted from income, lowering its post-tax cost. Consequently, equity with a portion of debt constructs an optimal capital structure.
Examples:
Bank Loans | SBA Loans | Personal Loans | Line of Credit | Credit Card Debt |
Overdraft Agreements | Term Loans
Micro Loans
When developing financial projections, evaluating all aspects of the business is essential to establish a forecast from rooted facts. The benefits drive growth from evaluating economic forecasts, business goals, budgeting, and controlling cash flow to discovering full profit potential. The approach empowers the framework to project financing requirements, time elements, and the amount of capital to maintain profitability. Such accumulation of data facilitates the ability to analyze and formulate predictable growth, underlining cash flows, pricing impact, and altering production.
The outcome fosters the ability to measure projected income, estimated sales, price of product/service, and significant financial ratios for calculating profit compared to net earnings and return on net worth. Developing the projections cultivates a detailed forecast applicable to cash inflows and outlays while creating income and balance sheets to build a strategic business plan. The results provide the banker, investors, and other types of prospects insight into the opportunity.
Examples:
SBA (Amounts not to exceed $50,000 with interest of 8%-13%) | Accion Opportuntiy Fund (Amounts of $50,000-$100,000) | Kiva U.S. Amounts not to exceed $15,000 | USDA FSA Microloans (Amounts not to exceed $50,000)