Business Capital » Reports

Restructuring Venture Backed Companies

Zoey — Tue, 26 Jun 2007 20:40:57 +0000

Venture capital investing is certainly a risky venture. That is what demands the high reward for those who are bold enough to invest in and develop a project without an established track record. While the goal is to maximize the return in an investment, some statistics show that 35 percent of all venture projects experience some sort of loss on the initial capital invested, while 7 percent of projects result in 50 percent of the profits.With such an asymmetric distribution, many investors have recently become less inclined accepting losses as part of their assumed risk in such ventures. Sometimes venture capital firms find themselves in a quandary as to whether it is in their best interest to continue funding a losing investment, wind down a company, or simply force management to give up much more equity in return for providing more funds to pay off old debts.

This is where Business Capital comes in. We present you with the option of restructuring the corporate debt on a 100 percent contingency fee basis. Business Capital has developed a proven, effective way to eliminate debt for venture backed businesses that find themselves in financially distressed situations. In the case of venture capital, no one likes to invest more money in order to pay off past debts, but would rather invest in the growth and expansion of a venture.

As an example, conventional wisdom would put a financially distressed venture backed entrepreneur in the position of requesting more funds from his investors before the investment has realized sustained profitability. This may or may not be in the best interest of the investor or the venture backed company, depending upon timing, return on investment potential, or even the desire to risk funding a riskier investment.

As a professional turnaround company, we can provide an intermediate option. By slashing the corporate debt and burn rate, we can ultimately improve the financial health of the business. We reduce the risk of the investor making an additional round of funding to a project on the cusp of profitability and at the same time increase the value of the venture backed company.

Our venture capital backed clients take no risk in engaging Business Capital to restructure their corporate debt. Our number-one concern in a restructuring is the financial viability of our client. By examining several variables–including but not limited to capital structure, quick ratio, aged payables, and leveraged positions–we are able to put together a strategy that will induce creditors to amicably settle and sign off on the liabilities as paid in full. In doing so, we are compensated on a contingency basis. Unlike attorneys, we do not increase transaction costs by charging for billable hours, court appearances, or stretched out payment plans. In short, we are not compensated until your debt is restructured.

Please consider our services as a tool in order for you to increase return. Our service will allow you to augment the staff of your company and allow management to focus on revenue-generating activities instead of responding to and paying down creditors whose products or services provide little or no contribution to the bottom line. We will slash your burn rate, improve the balance sheet, and stop the bleed.

Business Capital strives to build the trust rapport and respect for a productive business relationship. Our references are freely available upon request and will attest to our ability and experience.

Restructuring Public Companies

Zoey — Tue, 26 Jun 2007 20:39:39 +0000

As opposed to a private company, where the owners are usually limited to a select few, public companies are available to purchase to anyone wishing to buy. Individuals purchase shares via the stock market, the total of which represents the percentage of ownership they have in the company. Since shares can be bought and sold openly, the financial health of public companies is carefully monitored. Any sign of trouble can lead countless investors to discard their shares, creating even larger problems.It is essential for a company’s survival for it to remain proactive, especially when it is facing financial strife. At Business Capital, we specialize in restructuring public companies dealing with excessive debt or other forms of financial turmoil. We offer a variety of individualized solutions and approaches designed to reduce debt, increase capital and protect companies from the dangers of bankruptcy.

Jumping straight into the “protection” provided by bankruptcy can have serious negative consequences for a publicly traded company. Most corporate entities do it because they see no other alternative. Fortunately, at Business Capital, offering alternatives is what we do best. Whether your company is hampered by its level of debt or has a specific financial area that needs to be addressed, our experts have unparalleled experience when it comes to restructuring public companies. Let us assess your situation and provide you with a comprehensive plan that can help you maximize your business’s success.

To obtain more information about our business restructuring services, we invite you to contact us directly toll free at (888) 499-4775. You may also fill out our short online information form, through which we can schedule a free initial consultation. Why sit and wait as your company’s financial problems continue to grow? At Business Capital, we understand that time is always of the essence. Contact us today and see how quickly our services can get you back into business.

Restructuring Sole Proprietorships

Zoey — Tue, 26 Jun 2007 20:38:03 +0000

Sole proprietorships are one of the easiest–but also one of the riskiest–types of businesses to start. The reason for this is simple: all responsibilities of a sole proprietorship rely entirely on the owner. There are absolutely no limitations of liability in place, such as those that protect corporations. To that end, although all the profits are used as the sole owner sees fit, the sole proprietor is also 100 percent responsible for all of the debts.The simplicity of starting a sole proprietorship is also one of its primary downfalls. In many cases, those who start such companies have little to no experience in the business world, leading to an increased possibility for financial trouble. Even worse, when such problems do arise, many owners simply turn to bankruptcy in hopes of either saving their companies or some of their assets. In truth, bankruptcy is not the only solution, and in many cases is far from being the better one.

At Business Capital, restructuring sole proprietorships is a specialty we have perfected. Our experts have helped countless companies rebound from financial turmoil, leading them back onto the road of success. Whether you have trouble paying your creditors or feel that excess debt is stifling your growth, we can provide you with the outlets and approaches needed to increase profitability and protect your company’s (and therefore your own) personal credit.

We understand that dealing with financial trouble can be overwhelming, especially when your company’s financial health is inextricably linked to your own. Waiting for things to resolve themselves is a recipe for disaster. Contact us today at (888) 499-4775 and see how our agents can create a restructuring plan for your sole proprietorship that could help reduce your debt and save you from bankruptcy.

Restructuring Small to Midcap Companies

Zoey — Tue, 26 Jun 2007 20:36:23 +0000

Managing debt is an integral part of any business. Throughout the life of a company, there are moments of great success and times where finances are tight. In many situations, financial pressures can be such that companies feel forced to look into bankruptcy as a way to alleviate their problems. Unfortunately, although bankruptcy does offer a number of solutions, it typically comes with a whole new set of problems that could keep the company from ever regaining its footing.For small to mid-cap companies, Business Capital offers extensive restructuring services designed to avoid bankruptcy altogether. Our primary goal is a simple one: to improve our clients’ financial health while satisfying their particular creditors. How do we achieve this? In truth, there isn’t a single answer, as restructuring small to mid-cap companies often requires a multi-pronged approach, which is determined by each individual case.

Corporate debt is not one of the easiest things to handle, especially when dealing with creditors and vendors who have become impatient. Such situations are among our strengths. In fact, we pride ourselves on being able to create (or recreate) strong lines of communication with creditors. To that end, our amicable solutions not only provide the financial balance our clients are looking for, but also ensure that their commercial relationships remain intact.

We invite you to contact us directly at (888) 499-4775 or via our website to set up a free, no-obligation consultation with one of our experts. Why risk losing more money, or even your company, by going through tumultuous bankruptcy proceedings? At Business Capital, we have the experience and dedication to restructure your company and help make it profitable again in as little as three months.

Restructuring Companies and Protecting Vendor Continuity

Zoey — Tue, 26 Jun 2007 20:34:54 +0000

Balancing a company’s relationship with its vendors is an important part of business. Having a good relationship with vendors can lead to better deals, which could include price breaks or a larger line of credit. On the other hand, if the relationship sours due to financial stress, vendors can rapidly become difficult to deal with, as their primary concern will shift to collecting what they are due as opposed to providing the company with what they need.Financial difficulty can come to any company, no matter its size. When debt becomes unmanageable, a business’s relationship to its vendors is usually among the first casualties. If a company decides to use bankruptcy as a way of settling its finances, the consequences can be quite drastic, with vendors often no longer wishing to do business with the company in the future.

At Business Capital, we specialize in restructuring companies and protecting vendor continuity. Instead of opting for bankruptcy, we offer a number of effective solutions designed to reduce a company’s debt and help maintain its obligations to its vendors. We understand how market fluctuations can drastically affect a company’s cash flow, and we espouse a proactive philosophy where we work with creditors and vendors to ensure that situations are resolved amicably.

No matter the industry, at Business Capital, we have over a decade of experience restructuring companies and protecting vendor continuity. Before giving up and going through bankruptcy, contact our experts to discover the options you may have never known you had. Our initial consultation is free and can be scheduled by calling us at (888) 499-4775 or by filling out our online information form.

Debt Resolution

Zoey — Tue, 26 Jun 2007 20:32:46 +0000

In today’s business world, nothing is ever certain. Market fluctuations can cause successful companies to falter, suddenly dealing with large quantities of debt. Dealing with creditors and vendors clamoring for payment is a full-time job in and of itself. Not only does dealing with such issues detract from the important job of expanding a company, but such debt can also literally halt a company from doing so.When faced with mounting debt and little resolution in sight, many companies make the mistake of immediately seeking the “protection” of bankruptcy. Unfortunately, as much of a fail-safe idea bankruptcy may appear to be, it can actually cause more damage to a company. From losing the faith of vendors to tarnishing one’s reputation–and accumulating additional debt in the form of legal fees–bankruptcy should never be placed ahead of other options such as restructuring and debt resolution.

At Business Capital, we have spent the last decade helping a wide variety of companies achieve debt resolution. By providing our clients with a cohesive and comprehensive restructuring plan, we have the ability to slash existing debt, therefore improving company cash flow and eliminating the need for bankruptcy. Most importantly, we understand that speed is often a deciding factor, which is why our solutions are designed to begin working within 90 days.

Dealing with corporate debt can be overwhelming. Why let your company drown in unpaid bills when you can turn to the expert help offered at Business Capital? No matter where your company is located in the United States, simply contact us toll free at (888) 499-4775 to set up a free consultation. Through our debt resolution services, you’ll no longer have to deal with creditors, letting you focus on what is important: your company’s growth.

Asset Based Lending

Zoey — Tue, 26 Jun 2007 20:31:42 +0000

The world of business has changed. With it has come a change in the way business loans are structured. In the past, sales projections and balance sheets were required to qualify for a bank loan. Today there are more options. With asset based lending, it is possible to make the assets you already have work towards the growth of your company, no matter its current profitability.How exactly does asset based lending work? Asset based lending uses the assets of your company as collateral for the loan. These assets can take many forms, including accounts receivable, inventory, equipment or real estate. These types of loans are very flexible, with loan amounts varying anywhere from $400,000 to $2 million.

Asset based lending works best for companies that simply to do not have the up front capital to make necessary purchases in the form of inventory or acquisitions. These versatile loans make it possible to ease cash flow burdens. With less stringent guidelines than many bank loans, asset based lending is a flexible alternative to traditional commercial financing options.

At Business Capital, we help companies find solutions to the financial burdens they are facing. Our staff of dedicated professionals come from a broad range of backgrounds, enabling us to offer businesses a wealth of options. Through asset based lending we can help companies with annual revenues of $2 million to $150 million find the financing they need now for their future growth. Contact Business Capital for a free consultation to learn more about our services.

Business Bankruptcy Alternatives

Zoey — Tue, 26 Jun 2007 20:30:12 +0000

The business world is all about ups and downs. Unfortunately, for many companies, the downs often seem too difficult to get back up from. In situations of financial difficulty–as debt piles up and vendors are no longer getting paid–many business owners simply throw in the towel. Every year, tens of thousands of companies file for bankruptcy in hopes of receiving some type of financial protection that will allow them to continue doing business.In truth, bankruptcy is not the simple process it may appear to be. It can, in fact, have a tremendously negative impact on a company, both in legal fees and in terms of business relationships. Fortunately, bankruptcy is far from being the only solution available to companies facing financial turmoil.

At Business Capital, we offer companies a number of business bankruptcy alternatives. When dealing with excessive debt, it is essential to take a proactive approach. Simply waiting, in the hopes that the company will miraculously be able to pay its bills, is one of the most effective ways to go out of business. A proactive approach means dealing directly with vendors and creditors to restructure the business and take a different approach. Of course, this process can be difficult and time consuming, which is why Business Capital can help.

With over ten years of experience in the industry, Business Capital has built a reputation as a leader in the business turnaround industry. We approach every company we help with the individualized attention it needs, optimizing our plans for each particular situation. Contact our experts today at (888) 499-4775 to discover the entire range of our business bankruptcy alternatives.

Also visit our Business Wind Down service page

Business Debt Arbitration

Zoey — Tue, 26 Jun 2007 20:28:04 +0000

Just as in life, businesses sometimes have growing pains. One common problem is a shortage of cash flow. When a business lacks the money to promptly pay vendors, creditors or even employees, it is time to seek help. At Business Capital, we can help you restructure and implement debt relief solutions that will turn your business around.There is no need to feel like your business is drowning in debt. While bankruptcy can sometimes feel like a viable solution, it is not the only one you have. Through Business Capital’s business debt arbitration services we will work with your creditors to come to an agreement that works for both sides without legal action.

After all, relationships are the backbone of any company. Business Capital can help you stay in good standing with your clients and creditors while helping you get the relief you need. In addition to negotiating both debts and accounts payable, our team of experts will work with you to design long-term solutions so you can avoid falling into financial stress in the future.

Legal action can be both costly and time consuming for both sides. Business debt arbitration is an amicable alternative that keeps both parties out of court. We believe so strongly in our ability to get results that our services are free if we do not accomplish our goal. To receive a free, no-obligation consultation about debt restructuring and debt arbitration for your business, contact Business Capital today.

Business Debt Management

Zoey — Tue, 26 Jun 2007 20:26:59 +0000

One of the biggest worries small business owners have is the fear of losing their business to bankruptcy. Unfortunately, mounting debt and a shortage of cash flow can make it difficult to see a way out. For this reason, many businesses have turned to bankruptcy as a means of managing debt.Unfortunately, changes in bankruptcy laws have made it so that bankruptcy may no longer be a solution for many small business owners. Thankfully, there are other options. Debt managementcan help businesses keep the relationships their companies depend on while still offering creditors and owners a plan that satisfies both parties.

If your business is in financial crisis, Business Capital can help. Our team of attorneys, investment bankers and analysts has been helping businesses restructure their debt and form long-term solutions to financial problems for over a decade. The solutions you’ll find through our service can keep you out of court and focused on what is most important–getting your business back on its financial feet.

Our broad range of services allows us to customize a program to your company’s specific needs. Through our business debt management program, we work with your creditors through a combination of restructuring, settlement, reduction and liquidation to reach an agreement that is beneficial to both sides. After all, filing bankruptcy can have a lasting effect on your business. With Business Capital you’ll learn about alternatives to this drastic solution.