A Scarcity of Funding Options for Small
Companies |
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Personal
contributions and “friends & family” fall short of need. |
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Banks usually demand significant
collateral and impose undesirable covenants. |
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Factoring companies
look for significant levels of high-quality receivables. |
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Many merchant cash
advance firms have short-term payback requirements, thereby requiring
companies to dedicate a high percentage of their cash collections to those
paybacks. |
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VCs and private
equity firms usually press companies for low pre-money valuations and often
demand other onerous terms. |
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The financing
requirements of the companies targeted by Seaside are generally too small to
be of interest to firms managing massive pools of capital. |
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