Author Archive

How Buyers Acquire Small Business Financing

Written by Gene Wright. Posted in Small Business Funding

A buyer with 100% cash is rare. Some sort of financing will most always be needed to close the deal. There are various options for financing covered below with the understanding that buyer qualification is the key element. The ability to finance a buyer purchase is often the make or break point to closing.

Let us dispel one myth; the misconception that the owner HAS TO hold a note or mortgage on the business to get a deal closed. This is not true, and it totally rests with each owner’s preference. While we contend that selling a business with some amount of owner financing makes it slightly easier to sell, we always advise owners to speak with an accountant about the pros and cons to holding a loan on their business.

Three types of financing…

  1. Owner-held financing. There may be some tax benefits using this approach.
  2. Local bank loans. Bank financing is very difficult for a buyer to secure in the small environment, since banks are risk averse. Bank lending is the primary reason for the misconception that lender financing is difficult.
  3. SBA financing through third party lending sources. This is the primary lending source used to fund buyers of small businesses. These lenders are specifically in business for small business lending. Most business buyers do not know of these types of lenders have the contacts to use them successfully.

Placeholder Post – Put Content Here

Why Did Home Depot Go To Silicon Valley?

Written by Gene Wright. Posted in Gene Wright

Thanks to shows like Shark Tank, the concept of publicly pairing entrepreneurs to investors is now a mainstream concept, piquing the interest of many Americans.

At one time, pitching a new business idea to a group of investors was an alternate option to traditional funding that made raising capital possible for the average entrepreneur. Today, thanks to the democratic nature of the Internet, there are more options and fewer barriers than ever before.

Three Steps Georgia Must Take To Encourage Non-Accredited Investors

Written by Gene Wright. Posted in COVID 19 Get Help for Small Businesses

Now that the legal barriers have been removed to allow non-accredited investors to participate in equity crowdfunding initiatives in Georgia, we should address the practical roadblocks that are keeping people out of the market. A recent article in the Harvard Business Review addressed some of these areas and ways to prevent financing bottlenecks.

When You’re Finished Raising Money, Don’t Forget to Do This

Written by Gene Wright. Posted in Funding/Lending

Plenty of small business owners invest months leading up to the launch of an equity crowdfunding campaign. But the work does not end with a successful raise: Maintaining effective ongoing communication with investors, customers and stakeholders long after the campaign has ended can not only prevent legal headaches, but can also become a competitive advantage.

The Success or Failure of Your Equity Raise Depends (Mostly) on How Well You Do This

Written by Gene Wright. Posted in Funding/Lending

Want to know whether or not a proposed business investment is sound? Look no further than its Value Proposition. A VP is the starting point for potential issuers in developing equity crowdfunding campaigns that has a significant influence on their success or failure. Simply put, if the VP isn’t clear and compelling enough, investors will look elsewhere for better returns for their dollars.

Rebuilding the American Dream: Small Business by the Numbers

Written by Gene Wright. Posted in COVID 19 Get Help for Small Businesses

Former President Ronald Reagan called them the “forgotten heroes of America”: small business owners who make up a startling majority of job creators, employers and exporters. But these local, home-grown companies often meet huge financial challenges as they try to get their businesses off the ground. From legal advice to proper underwriting, entrepreneurs are facing many challenges raising the equity they need to make their American dream come true. That’s where crowdfunding may help. Simply put, the promise of crowdfunding can help small business, and small business drives the American economy.

Intrastate Funding – Why Are So Many States Introducing It?

Written by Gene Wright. Posted in Crowdfunding

Georgia and Kansas may have led the way in Crowdfunding and Securities Exemptions (CASE) legislation, but many other states are quickly seeing the advantages and passing similar legislation of their own.

After all, crowdfunding promises job creation and economic improvement at the state level. And because any astute politician can see the logic in keeping jobs and business taxes in state.

Business Evaluation Primer for Non-Accredited Investors

Written by Gene Wright. Posted in Venture Equity

“I keep six honest serving-men: (They taught me all I knew);

Their names are What and Why and When, And How and Where and Who.”

— Rudyard Kipling, The Elephant’s Child

The Five W’s and How are well known by news reporters, but the checklist can be useful in other situations. Nearly every day I get questions from non-accredited investors about crowdfunding. “I want to get involved,” they say. “But give me some pointers.” So, in the interest of answering their queries and making it all-round easier for me, here’s my Business Evaluation Primer for non-accredited investors, who are interested in crowdfunding capital growth opportunities. I’m using Kipling’s checklist (and between you and me, we’re just following the same rules that the guys who raise money for a living follow).