NOVEMBER NEWSLETTER 2022
Obtaining the right type of capital to fund your small business can be a much-needed lifeline on your path to success. One of the top reasons that small businesses fail is due to lack of funding.
Friends, family, banks, online lenders, SBA loans, credit cards, investors, private grants, federal/state grants, and crowdfunding—It’s overwhelming! Where is the best place to secure funding? How long can approval take? What are the interest rates? Each lending option has its pros and cons, and small business owners need to be armed with the most up-to-date information.
Please join us!
The Funding Strategies Conference
Smart Loan Options for the Small Business:
Finding the Right Type of Funding
FREE WEBINAR
A bi-monthly series
Thursday, December 8, 2022
2 PM -3 PM ET
As credit markets have tightened, the funding landscape has changed, which means understanding the options available to your small business is even more critical than ever before. The Funding Strategies Conference brings together leaders from every segment of the financial industry to provide objective guidance and insight, so you know the best place to acquire funds.
In the Smart Loan Options for the Small Business webinar, our panel can help you learn how to find the right type of capital for your company, what you need to know when seeking funding, and funding trends for 2023 and beyond.
Meet the Experts
Our panel will deliver the information today’s savvy financial executives need to know before finalizing business plans and searching out funding sources. The information is both educational and objective. The Smart Loan Options for the Small Business panel is comprised of industry experts, from a variety of companies and backgrounds.
A Free Livestreamed Event
Smart Loan Options for the Small Business: Finding the Right Type of Funding live stream will be on December 8, 2022, from 2 PM to 3 PM ET. A simple registration will give you full access to the event, plus complimentary viewing access after the event via our sponsor’s websites.
Complimentary Full Access Registration
There is no charge to participate in the livestream thanks to the generous support of our sponsors; however, registration is required. Space is limited. Registration closes on November 30, 2022.
Finding the Right Funding for Your Small Business Can Be Essential to Survival
Finding the Right Business Consultant to Help with Mergers and Acquisitions
Mergers and acquisitions (M&A) can help a company boost market share, grow the customer base, increase profits, or enter new markets. However, over 70% of M&A’s don’t succeed. How can a SME business owner—who may not have a dedicated financial team or M&A experience—successfully manage the complicated M&A process? The answer is to find the right business consultant to help you.
Look for an experienced M&A consultant possessing a degree in accounting, finance, or business with a background in financial services, such as investment banking. The consultant may work independently or for a company offering advisory and consulting services which will help you avoid any pitfalls. One benefit of hiring an advisory firm is that they often have lawyers on staff to handle legal M&A requirements.
You want an M&A advisor who knows your market. This means they’ll have a strategic understanding of how M&A can improve your company operations and boost performance. An M&A consultant focused on your company's interests will add value by finding, evaluating, structuring, and closing the most rewarding and well-priced deals—while helping you navigate the entire process. An advisor who doesn’t know your field well may recommend a merger or acquisition that isn’t a profitable move and creates long-term issues—think AT&T and Comcast or AOL and Time Warner.
A good example of a successful telecom acquisition is Ribbon Communication’s purchase of ECI Telcom Group. The merger gave Ribbon the ability to scale up its business, offer a wider range of products, and expand into the lucrative, high growth 5G market.
Don’t overlook the basics. A good M&A advisor should have excellent organizational and time management skills. They also need to be a good communicator with strong people skills. You need someone advising who builds trust and can explain complicated financial concepts clearly—including tax, profit, and revenue implications—to both buyer and seller. An effective M&A advisor can manage expectations, so all parties feel they benefit from the deal.
The best way to find an M&A advisor is to leverage your business network, or a business networking site, such as LinkedIn. You can also search online for consulting firms specializing in M&A. Be sure to interview potential consultants, ask for references, and choose the person who best understands your company’s needs. After all, it’s your money and your business at stake.
Sources:
Clare Advisors: 5 Things to Consider When Choosing the Right Advisor: https://bit.ly/3sc6GP6
Consultport: Find the Best M&A Consultants: https://consultport.com/consultants/ma/
CRN: The Top 10 M&A of 2020: https://bit.ly/3gzIDXZ
Deal Room: Mergers and Acquisitions: https://bit.ly/3N6j6ld
Forbes: The 7 Steps to Finding an Expert Business Consultant: https://bit.ly/3TIcewD
Gallagher: Leveraging M&A Best Practices for a Fast-Paced Environment: https://bit.ly/3EJrrZR
Harvard Business Review: The Big Idea: The New M&A Playbook: https://bit.ly/3S9aYkR
Investopedia: What M&A Firms Do: https://bit.ly/3TmLaTd
Toptal: 11 Best Freelance M&A Consultants: https://bit.ly/3MxboAi
Can My Bank and Alternative Lender Work Together?
Do traditional and alternative lenders have to be rivals? Is it possible for them to work together? According to a recent World Bank report, small businesses are underfinanced globally by $5.2 trillion. This potentially lucrative revenue stream is a strong incentive for traditional and alternative lenders to prioritize successful financing for mutual SME (small and medium enterprise) clients by offering complementary products. For example, a small business could qualify for a bank loan at a lower rate of interest and obtain factoring or inventory financing from an alternative lender, thereby extending the company’s working capital.
A working partnership allows each lender to offer what they do best. Banks and traditional lenders have lower capital costs, an existing customer base and often a better-known brand. Banks, however, are limited by complex regulations, lengthy loan approval times and reduced cost-effectiveness when underwriting smaller loans. Alternative lenders are smaller, more agile, and unencumbered by the same regulatory requirements as traditional lenders. They can offer right-sized loans, fast approval times, a customized mix of debt and equity financing, ease of access (usually online) and more.
Banks are changing their lending practices to better accommodate the financing needs of small businesses. They’re creating specialized SME loan departments, shrinking loan sizes, and speeding up approval times. They’re also more willing to work with alternative lenders to offer customers better financial access. For example, JP Morgan Chase partnered with On Deck, an online lender, to offer a loan program for small business customers. The bank provided access and service to existing customers. On Deck provided the financial technology and easier qualifications to fast-track loans for SME companies that didn’t qualify for conventional bank financing.
These working relationships benefit both traditional and alternative lenders. Banks can also channel capital to alternative lenders while these lenders share information on their risk assessment and underwriting processes with banks. The partnerships better serve the growing SME market, while increasing trust and stability in the entire lending process.
Sources:
Ernst &Young:https://www.ey.com/en_sy/financial-services-emeia/why-digital-lending-is-the-future-for-banks-and-smes
LinkedIn:https://www.linkedin.com/pulse/big-banks-alternative-lenders-beginning-work-together-dan-aronoff/
National Retail Association: https://www.nra.net.au/bdo-how-banks-and-alternative-lenders-can-work-together/
World Bank: https://www.worldbank.org/en/topic/smefinance
Click to watch our most recent webinar:
FUNDING TRENDS: What to Expect in 2024
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The Funding Strategies Conference is a collaboration between ThermoCredit LLC and The Funding University. Together, we designed an educational forum for corporate leaders with fiduciary responsibilities, specifically to help them stay informed of new trends, strategies, and finance options.
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