The Essence of the commercial real estate hard money loan (HML) is based on the fact that they are short term loans for real estate investors to purchase and or rehab investment property that has substantial real equity. Commercial Real Estate Investors can make lots of money investing in properties using a hard money loan. For traditional financing the value of the property is the lesser of the purchase price or the appraised value.

If your company is at a point in its history and experiencing solid growth where you are considering looking for outside investors for your capital needs, then you want to know if your business will be or can be attractive to investors. If you plan to search for equity investors, you should know that they will expect a significant return on their investment (20% to 50% is not uncommon) and many times within 5 years. These investors will look carefully at the candidate company to characteristics that include, but are not limited to: a solid and proven management team; potential company growth; solid business plan; and evidence of strategic thinking and planning in a strategic plan with vision, mission core values and short term & long term goals.

This article describes the differences between venture capital and private equity.

Equity capital refers to the funds raised by a business in exchange of ownership shares in the company. Ownership, in turn, is represented by possession of stock shares either outright or the right of converting other financial instruments into the private companys stock. Two primary sources of equity capital for the new businesses are institutional investors and venture capitalists.

The rise of venture leasing and lending has created an opportunity for sophisticated entrepreneurs to gain a competitive advantage. Savvy entrepreneurs are using venture leases and loans to generate millions of dollars for shareholders by leveraging existing venture capital. They have discovered ways to use this flexible financing as a tool to build enterprise value between equity rounds and to leapfrog less sophisticated competitors.

If you’re thinking about getting outside or equity capital to help fund your business, there are some things you need to do first, that can make your business more attractive to investors. Follow these simple ideas, and you’ll be well on your way to raising the money you need.

The unraveling sub-prime mortgage market has spewed its wreckage across a vast cross section of the financial markets. Investors and lenders continue to smart from massive losses on investments and loans tied to this market. As some scramble to assess the implications of the sub-prime meltdown, many investors and lenders have either abandoned higher risk asset classes or are approaching them with great caution.

Think back to just a few short years ago, banks were on a lending spree, corporate lines of credit were being issued in record volume and companies were able to raise equity and debt capital with reasonable ease; then came the banking crash which unfortunately brought on an entirely new group of scams preyed on the innocent and naive small business owner which damaged the economy that much more. Scams such as platform based funding, banking instrument collateralized lending, shelf corporation scams and on and on.

Angel Investors and Equity Partners provide funding for companies with high potential. They differ in their expectations about cash flow and risk, the former preferring a steady flow and lower risk and the former expecting payment later with a high return. These investors have weak links with the founders, unlike families or friends, and can provide a much needed balance in the strategic direction of the firm or non-profit.

Does your business need money? Should you get a loan, find an investor? How do you know which is right for your company?