Banker's Guide to New Small Business Finance, + Website Venture Deals, Crowdfunding, Private Equity, and Technology
Produktdetaljer
Biographical note
CHARLES H. GREEN is a seasoned finance professional with over 30 years of experience advising, financing, and investing in the small business sector. His experience includes tenure as a commercial banker and venture capitalist.He also founded and served as President and CEO of Sunrise Bank of Atlanta. He regularly consults with business owners and bankers, writes about financial topics, and teaches finance through seminars and conferences produced by the enterprise he founded, the Small Business Finance Institute (www.SBFI.org).
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.
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
What's Next? Character Redux, Rise of Alternative Payments, and? 186
About the Companion Website 191
Index 193
Banker's Guide to New Small Business Finance offers bank executives, managers, and regulators a detailed reference to the virtual market of innovative lenders who are advancing funds to small business owners while accelerating their own enterprises' growth. Written by banking industry expert Charles H. Green, this important resource reveals how private equity lending pioneers are capitalizing on this emerging market to reshape small company funding and shows what the banking industry must do to compete in this burgeoning marketplace.
In the past ten years, hundreds of funding companies have emerged to provide business capital in some very inventive ways. These innovators re-examined every convention of traditional bank business lending, such as whom to lend to, how to underwrite and price risk, how to document credit/funding agreements, how to collect payments, and where to fund the deal. As Green explains, the growing popularity of crowdfunding, the power of digital lenders, and the paradigm shift created by Internet giants such as Google, Amazon, and Facebook are contributing factors that are drawing capital assets away from traditional commercial banks.
To better understand this trend, Banker's Guide to New Small Business Finance includes information on how the various virtual lenders work, as well as their application grid, pricing model, and management outlook. Designed as a hands-on resource, Banker's Guide to New Small Business Finance includes a companion website with the online tools and supplemental materials that will help to illuminate the key concepts discussed in the book.
Banker's Guide to New Small Business Finance gives banks large and small the ideas, suggestions, and strategies needed to understand this emerging market and take the initiative to engage both technology and clients to protect and expand market share in this brave new world of innovative funding.
Banker’s Guide to New Small Business Finance offers bank executives, managers, and regulators a detailed reference to the virtual market of innovative lenders who are advancing funds to small business owners while accelerating their own enterprises’ growth. Written by banking industry expert Charles H. Green, this important resource reveals how private equity lending pioneers are capitalizing on this emerging market to reshape small company funding and shows what the banking industry must do to compete in this burgeoning marketplace.
In the past ten years, hundreds of funding companies have emerged to provide business capital in some very inventive ways. These innovators re-examined every convention of traditional bank business lending, such as whom to lend to, how to underwrite and price risk, how to document credit/funding agreements, how to collect payments, and where to fund the deal. As Green explains, the growing popularity of crowdfunding, the power of digital lenders, and the paradigm shift created by Internet giants such as Google, Amazon, and Facebook are contributing factors that are drawing capital assets away from traditional commercial banks.
To better understand this trend, Banker’s Guide to New Small Business Finance includes information on how the various virtual lenders work, as well as their application grid, pricing model, and management outlook. Designed as a hands-on resource, Banker’s Guide to New Small Business Finance includes a companion website with the online tools and supplemental materials that will help to illuminate the key concepts discussed in the book.
Banker’s Guide to New Small Business Finance gives banks large and small the ideas, suggestions, and strategies needed to understand this emerging market and take the initiative to engage both technology and clients to protect and expand market share in this brave new world of innovative funding.
Produktdetaljer
Biographical note
CHARLES H. GREEN is a seasoned finance professional with over 30 years of experience advising, financing, and investing in the small business sector. His experience includes tenure as a commercial banker and venture capitalist.He also founded and served as President and CEO of Sunrise Bank of Atlanta. He regularly consults with business owners and bankers, writes about financial topics, and teaches finance through seminars and conferences produced by the enterprise he founded, the Small Business Finance Institute (www.SBFI.org).