THE PEPPERDINE PRIVATE CAPITAL MARKETS PROJECT (PPCMP); WHERE DO I GO WHEN THE BANK SAYS NO!?

According to the results of the PPCMP (http://bschool.pepperdine.edu/), business owners reported having increased enthusiasm about their company’s growth plans, but almost one-half of them reported the lack of necessary financial resources to successfully execute their growth strategies.

There have been about 250 bank failures since the start of the financial crisis in 2007 and with hundreds of additional bank failures expected over the next few years, business owners may be unable to finance or refinance their needs through traditional sources: senior cash flow lenders, asset based lenders and mezzanine funds.

The PPCMP reports on the current climate for accessing and raising capital from not only traditional sources, but also private equity groups, venture capital firms, angel investors, factors and family and friends. The ongoing research includes; the conditions influencing the decisions of each group, provides the cost of capital in each market segment and helps growing business owners make better financing decisions.

The available pool of alternative capital represents a unique opportunity for the business owner to step outside their normal comfort zone and explore new arenas of commercial financing in these challenging times.

Before approaching any source of capital, the absolute “must” is a well-prepared business plan that documents how the funds will be used, secured and paid back!