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Small business selling shares

 
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Nov 17, 2009 8:41 PM ET    Quote  Report Abuse
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How complex is something like this from both a cash and time invested perspective?....does it even make sense for a small start up to issue shares?

I'm looking to raise a large amount of capital (100k+), but I dont want a million partners running around telling me how to run the show, banks probably wont even look at me, neither would VC's and I'm not handing over my company to anyone that has the power to take it away from me.

I thought about Silent Partners, perhaps this would be easier?

My business is set up as an LLC.

Thanks.

robertj

posts: 1458

Nov 18, 2009 11:02 AM ET    Quote  Report Abuse
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Southern Lender,

 There are a number of ways to bring capital into a company/business. Whether it "makes sense" to sell a security (shares) depends upon the specifics of the situation, which includes your opinion and feelings on the matter. Generally, we believe that the cost of acquisition target should be 10% or less.    

It's not the "issuing" of shares because every entity should issue something to the owner(s) - with your LLC they would be "units". The actions that should be well  thought out and properly documented are the offer and sale of a security. NOTE: There are things other than "shares" that the SEC considers to be a security.

 If you want to discuss your specific situation, feel free to send me a PM or contact me directly.



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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com


MDonaldson

posts: 155

Nov 18, 2009 4:56 PM ET    Quote  Report Abuse
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If your business plan is solid and your personal credit is good, you may well qualify for a loan (even in this lending market). The SBA has an expedited (less paperwork) loan guarantee for loans up to $100k. A loan keeps all the ownership in your hands.

Best regards,

Molly Donaldson



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Start Here. Go Far. LaunchX
UPParks

posts: 6

Dec 01, 2009 2:07 PM ET    Quote  Report Abuse
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Use your Stocks and/or Mutual Funds as collateral!!!

My name is Patrick Parks and my company lends money against stock portfolios; up to 70% LTV, non-recourse with no credit score requirements and rates that range from 4% to 6% for terms between 3 and 5 years.

Funding is in 5 days.

My company lends on any publicly traded stock as long as there's sufficient volume. It doesn't matter what exchange - New York, London, and Nikkei - as long as it’s traded publicly and has volume to justify its price.

My company funds its own transactions. There is no waiting; once an approval is in hand the transfer is then made. Period! Done! What's the value to knowing if you meet the simplest of terms? Basically, with a publicly traded stock that has sufficient volume to justify its price you'll get a loan in 5 days.

When a transaction comes in and the stock is free trading and has no hair on it, the loan will be approved. Even penny stocks that have huge volume can be borrowed against. If you refer someone to me the deal will fund! And in today’s economy, where long term banking relationships are unreliable, if you have publicly traded stock then getting funded is SIMPLE with me!

You cannot borrow against retirement funds or your 401k. And if you’re a day trader you can’t borrow on that portfolio. An interesting thought though, is one could get into longer term stocks leveraging the borrowed money in day trading, or lending the money at 12-18% in today's lending environment, or buying distressed properties. The sky is the limit.

If you know of anyone who might be interested please refer them to me. For those who have stocks that are underwater, would have serious tax consequences from selling stock, or can’t borrow money because of credit, it’s an amazing tool. The fact it funds in 5 days, at market interest rates, makes it almost unbelievable.

In this economy, the appeal is to those who need money now and have stock they are holding that can be borrowed against and used to pay bills, build out a project, or make other investments.

 

• Need money for a construction or building project, up to 100 million dollars? Again, if you have publicly traded stock the deal is done. Five days after I get the information and give you a quote, you will have funds in the bank.

• Need money to invest in your business? Need 750k, 1,000,000.00, 2,000,000.00? If you have publicly traded stock, no matter how good or bad your company is doing, the stock is the collateral. No credit requirement. Money in 5 days. If you’re using your company stock and it’s on a downward trend that may impact the LTV, get me the info and I'll get you a quote.

• No matter the need. If you have stock, that’s publicly traded I'll get the deal done.

Most important, there's no limit to the funding amount. The better the stock, the higher the LTV. Regardless of the amount, the COMMITMENT IS MADE WITHIN 4 HRS of a deal coming in and funding will be within 3-5 days.

 

Just email the amount of funding you seek and a list of your assets that include your publicly traded stock(s) and/or mutual funds to mpparks@gmail.com for review.

Should your information meet the criteria, you will be contacted with a quote within 4 hours. Be sure to include your contact information and the best time(s) you may be reached.

 



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