Cincinnati, OH-KY-IN (1888PressRelease) December 28, 2019 – Angelo Sferrazza says securing private funding for businesses start-ups, expansion and rescue in today’s highly regulated banking industry is no easy process. Most businesses seek friends and family as a 1st option for funding. Next banks and SBA type programs and then if that fails the search begins for private investors and lenders. However, most formalized organized private investor organizations are known as Angel Investor Organizations. The good news is if you’re a technology company you will find various resources and funding options available. If your business is not primarily a technology company then you are likely going to need to seek out other private investors/lenders for your business funding needs.
Mr. Angelo Sferrazza says that the national statistic report “…about 3 out of 4 business funding requests are rejected by investors and lenders every day.” You can increase the likelihood of securing funding from private investors/lenders with collateral (real estate, inventory, receivables, etc.) through a bridge funding loan. Angelo Sferrazza, President of Strategic Funding, a Cincinnati, Ohio based company that helps businesses strategically secure private funding.
Bridge Funding is often referred to as short term capital until more permanent funding can be arranged through a bank or other funding source. Bridge Funding also provides ample time for the business post the bridge funding to validate the businesses financial models and forecasted projections.
Mr. Angelo Sferrazza said that this approach to securing funding is underutilized and marketed by both business seeking investors/lenders and investors wanting to privately fund business. He further suggest that business who have assets such as real estate advertise to the investment community stating that the business or its owners have collateral to offer to secure a bridge loan. If it is not real estate then another creative way to secure funding is to separate the business assets (inventory, receivables, etc.) into a separate special purpose limited liability company (LLC) and offer a funding source the ability to secure those assets through a UCC lien. At the end of the day, private investors want to be secured and would fund more transaction if business made their initial funding request more attractive.
Mr. Angelo Sferrazza indicates private investors and lenders want their investment to produce a higher return than the stock market would yield, while achieving the best means of having their investment secured. In 2020, marketable collateral is becoming more important as investment key criteria to enhance a business likelihood of success in securing funding from private funding sources. The business plan should consist of a concise executive summary, a detailed business model with descriptions of the business cost structure, and revenue streams; also specific marketing plans with information about the particular market. Says Mr. Angelo Sferrazza ”…the management team should also be experienced in marketing to include social media, such as Facebook, Twitter, and Instagram.”
The Internet and social media can be one of the best ways to communicate between businesses and private funding sources. However, Mr. Angelo Sferrazza warns that individuals should be cautious about the potential of fraud. He discourages anyone giving people money in advance to fund or invest in their business opportunity. In the city of Cincinnati, Ohio and beyond, Mr. Angelo Sferrazza, through Strategic Funding, has been connecting businesses seeking capital for business start-ups, business expansions, and business rescues with private funding sources. Mr. Angelo Sferrazza continues to be recognized among the national business community as one of the most knowledgeable professionals in structuring business deals.