Banker''s Guide to New Small Business Finance, + Website - Venture Deals, Crowdfunding, Private Equity, and Technology

Detailed, actionable guidance for expanding your revenue in the face of a new virtual market
 
Written by industry authority Charles H. Green, Banker's Guide to New Small Business Finance explains how a financial bust from one perfect storm--the real estate bubble and the liquidity collapse in capital markets--is leading to a boom in the market for innovative lenders that advance funds to small business owners for growth. In the book, Green skillfully reveals how the early lending pioneers capitalized on this emerging market, along with advancements in technology, to reshape small company funding.
 
Through a discussion of the developing field of crowdfunding and the cottage industry that is quickly rising around the ability to sell business equity via the Internet, Banker's Guide to New Small Business Finance covers how small businesses are funded; capital market disruptions; the paradigm shift created by Google, Amazon, and Facebook; private equity in search of ROI; lenders, funders, and places to find money; digital lenders; non-traditional funding; digital capital brokers; and much more.
* Covers distinctive ideas that are challenging bank domination of the small lending marketplace
* Provides insight into how each lender works, as well as their application grid, pricing model, and management outlook
* Offers suggestions on how to engage or compete with each entity, as well as contact information to call them directly
* Includes a companion website with online tools and supplemental materials to enhance key concepts discussed in the book
 
If you're a small business financing professional, Banker's Guide to New Small Business Finance gives you authoritative advice on everything you need to adapt and thrive in this rapidly growing business environment.

List of contents

Figures and Tables xi
 
Preface xiii
 
Acknowledgments xix
 
About the Author xxi
 
Part One: Survey of Funding Small Business 1
 
Chapter 1: How Small Businesses Are Funded 3
 
Defining Small Business 3
 
ABCs of Small Business Funding 8
 
Usual Suspects Providing Business Capital 10
 
The Rise of Alternative Financing 12
 
Chapter 2: Elusive Nature of Bank Funding 15
 
Risk Appetite Is an Oxymoron 16
 
Source of Bank Funding Limits Its Use 17
 
Small Business Credit Is Difficult to Scale 19
 
Loan and Bank Size Are Inversely Related 20
 
Chapter 3: Capital Market Disruptions, Post-2008 23
 
Didn't Anyone See Bubble Coming? 23
 
This Time Was Different 25
 
Where Did Main Street Funding Go? 29
 
SBA--Main Street's Federal Bailout? 30
 
Supply versus Demand--Did Anyone Ask for a Loan (and What Was the Answer)? 33
 
Post-Crisis Reflections on Financial Regulation 37
 
Part Two: A Perfect Storm Rising 43
 
Chapter 4: A Paradigm Shift Created by Amazon, Google, and Facebook 45
 
Amazon Creates Digital Trust 46
 
Who Answered All Those Questions Before? 49
 
Your Opinion Is (In)valuable 51
 
How Do These Changes Affect Small Business Lending? 54
 
Chapter 5: Private Equity In Search of ROI 59
 
The Fed's Low Interest Policy and the Effects on the Private Investor 60
 
Wall Street Isn't Main Street 60
 
First Buy In, Then Invest Up 62
 
A Cautionary Note about a 72 Percent APR 67
 
Chapter 6: First Change the Marketplace, Then Change the Market 71
 
Old Thinking/Technology Can Stifle Credit 72
 
Morality and Money 78
 
The Unintended Consequences of Old Law 79
 
Capital Markets Go Digital 81
 
Pattern Recognition--Data Is the Game Changer 82
 
Different Processes and Different Views 84
 
Crowdfunding versus the Crowd That Got Funding 86
 
The Rise in Alternative Paths to Source Funding 88
 
Billions Went Missing and No One Noticed? 89
 
Part Three: Digital Dynamics in Small Business Funding 93
 
Chapter 7: Funders and Lenders--Online Capital Providers 95
 
Innovative Funding Marketplace 95
 
Online Funders: Purchasing Future Receipts 97
 
Online Lenders: Money from the Cloud 106
 
Chapter 8: Crowdfunding with Donors, Innovators, Loaners, and Shareholders 125
 
Donors--Funding Arts, Solving Problems, and Floating Local Businesses with No Strings Attached 125
 
Innovators--Buy It, I'll Build It 133
 
Loaners--Brother Can You Refinance My Visa? 135
 
Shareholders--Online Market for Equity 140
 
Crowded Elevator? 147
 
Chapter 9: Other Innovative Funding Sources on the Rise 151
 
Factoring in the Digital Age 151
 
Working Capital Management as a Financing Strategy 156
 
Investing Retirement Funds in Self, Inc. 157
 
No Store, No Hours, No Bank, No Problem--Virtual Lenders for Virtual Merchants 160
 
Taking as Much Time as Needed to Repay 164
 
Chapter 10: Capital Guides--Online Resources to Find, Coach, and Assist Borrowers and Lenders 167
 
Loan Brokers 168
 
Other Online Resources 174
 
Chapter 11: What Innovation Means for Bank Lending 177
 
Competition Erodes Banks' Share of Small Business Loans (Again) 178
 
What Banks Can Fund (but Won't) versus What Banks Cannot Fund (but Will) 180
 
The Best Defense Is Still a Good Offense 182
 
Banks Still Have the Most Customers and Cheapest Bucks in Town 184
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About the author

Michelle Green is a poet, acrylic painter, entrepreneur, and self published author of "Beauty In The Face Of Adversity." She started a small art business to showcase her expressive acrylic portrait paintings and to inspire other women to become more empowered. For more information regarding her work please visit: www.mozzafiatoart.com.

Summary

Detailed, actionable guidance for expanding your revenue in the face of a new virtual market Written by industry authority Charles H.

Product details

• Authors: Green, C Green, Charles H Green, Charles H. Green
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 07.10.2014
• EAN: 9781118837870
• ISBN: 978-1-118-83787-0
• No. of pages: 224
• Series: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; Wiley Finance Editions
• Subjects: Guides > Law, job, finance; Social sciences, law, business > Business > Management; Bank, Finance & Investments, Finanz- u. Anlagewesen, Geld u. Bankwesen, Money & Banking