Cleveland Private Placement Financing

Private Placement Financing for Companies, Businesses and Corporations in Cleveland

The one constant in the life of your small business will be the need for a cash infusion to jump start sales, expand into new markets, or continue to sustain growth. While there are a multitude of financing sources of funding available to small business owners, each source has its limitations and requirements.

For instance, commercial bank loans are often intended for businesses that have been around and have shown a steady stream of profitability. Private placements are an attractive alternative for growing companies.

What is Private Placement Financing

Private placement or private investment capital, is money invested in your company usually from private investors in the form of stocks and sometimes bonds. In the United States, private placement often does not need to be registered with the Securities Exchange Commission. Regulation D is the most popular form of non-public private placement.

According to Thompson Financial, over 416 billion was issued in the private placement market for 2002. As good as it sounds, the majority of those dollars came from pension funds, investment pools, banks and insurance companies amounting to just over 2,000 deals. However, private placement does exist for the small business owner and is often less expensive and easier than taking your company public.

Advantages of Private Placement Financing

There is a high degree of flexibility in amount of financing ranging from 100 thousand to 10-20 million with combinations of debt, equity, or debt and equity capital. Investors are more patient than venture capitalists, often seeking 10 to 20% return on investments over a longer term of 5 to 10 years. Much lower costs than approaching venture capitalists or selling the stock to the public as an IPO (Initial Public Offering). Quicker form of raising money than usual venture capital markets.

Once we receive your answers, we will match you with 5 to 10 institutional sources based on the size of the financing needed and the industry. If we get a critical mass of interest — usually 3-6 or more — we proceed to the next step: a due diligence visit. This visit ensures that you and your facilities are of the quality required by the financing sources. If the client is in the Cleveland area there will be no travel expense.

Obtaining Financing in Cleveland

First we must determine whether the prospective client qualifies for the financing they seek and there is a critical mass of interest in a financing. This involves a process that matches the prospective client with the right institutions that will provide the financing they seek. For starters, this entails answering 4 questions at no cost to the company:

What business are you in?
What are your revenues? (Must have $10 million or more in revenues)
How much financing do you need?
For what purpose do you need it?

When you contact us and answer these questions, we take you through the process of obtaining financing step by step.

Cleveland financing

At each step in the qualification process if there is not enough interest from financing sources the process stops before any money is expended.

This engagement process results in higher advance rates, lower interest costs, and better terms and conditions for our clients.

Our process from start to finish takes an average of 57 days.

Cleveland Corporate Debt Financing

Debt financing allows you to have control of your own destiny regarding your business. You do not have investors or partners to answer to and you can make all the decisions. You own all the profit you make. AMG Financing Capital helps private and public Cleveland companies in the middle market having over $10 million in annual revenues obtain debt financing for Expansion, Acquisitions, Bank work out department out placements, Bankruptcies and reorganizations, and Certain real estate projects. These financings have ranged from $1 million to $50 million and can include equity and senior debt, purchase order, and cash flow financing. For more than 40 years, AMG Financing Capital has found over $4 billion in financing for over 1000 companies. OUR PROCESS HAS PRODUCED A 100% SUCCESS RATE.

Cleveland Business Debt Financing

If you finance your business using debt, the interest you repay on your loan is tax-deductible. This means that it shields part of your business income from taxes and lowers your tax liability every year. Your interest is usually based on the prime interest rate. Presuming our due diligence is successful, we present our findings to the financing sources that have expressed preliminary interest. These sources are screened to ensure that they are coming to visit your company with a view towards making an offer within the parameters of your needs. At this point, we are ready to be engaged. You, our client, has had no outlay of funds until now. The engagement entails AMG producing a written presentation to the financing sources which takes about a week, and scheduling the visits of the interested sources. Usually there are 3-6 visits. Again, On average it takes 57 days for a debt financing to take place. Almost 30% of our financings are done with institutions that have turned down the company's financing opportunity before our involvement.

Our engagement fee is deducted from the success fee. The success fee is a percentage of the financing. These fees are agreed to in writing before the financing process takes place.

Our careful adherence to this process guarantees the maximum results possible for our client's financing needs, and why our success rate is so high.

Call us today at 1-800-869-8789 or 1-310-454-1114 or contact us here for a no-obligation assessment.