James River Capital Reveals Funding OpportunitiesSeptember 5, 2019 - Author: steph - No Comments
An article was recently published on Premier Gazette titled, “How Entrepreneurs Can Fund Their Business: Tips from Paul Saunders, Founder of James River Captial.” The article describes the advice of the founder of James River Captial for new business owners. Paul Saunders began his career in finance and investing after studying at the University of Virginia and the University of Chicago where he completed his B.A. and M.B.A. Saunders had a number of different roles before starting his company including in investment banking and trading. He worked with the Commodity Department at A.G. Becker and the Corporate Finance Department at Warburg Paribas Becker.
One of his suggestions for new entrepreneurs is a business loan. There are a number of different kinds of loans available, but Saunders suggests the Small Business Administration loans and bank loans. These loans have low-interest rates. Unfortunately, the approval process for a bank loan can be lengthy. SBA loans tend to be more expensive, but entrepreneurs can get the loan much quicker. To qualify for the bank loans and the SBA loans, you have to have a strong credit score. Lines of credit are also available when the lender approves a pool of funds for your business. The entrepreneur will only have to pay interest on the funds they actually use. Once the business owner has paid back the money with interest, the funds will be available to use again. If the entrepreneur has a low credit score, they can use equipment financing. The loan will be paid back in monthly instalments for the upfront cost of the equipment. However, the equipment becomes collateral for the loan.
Paul Saunders also suggests local loans for business owners. The local Chamber of Commerce can provide information on funding your loan locally. They may suggest the business development centres at local universities that also allow business owners to meet other entrepreneurs and investors. They also provide information for local loans and will even assist in the application process.
Venture Capitalists are another investment option, though there is often more pressure. Venture capitalists want a high return quickly. Business owners should be well-prepared to pitch their business idea.