A Scarcity of Funding Options for Small Companies

 

 

 

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(private)

 

Personal contributions and “friends & family” fall short of need.

 

 

Banks usually demand significant collateral and impose undesirable covenants.

 

 

Factoring companies look for significant levels of high-quality receivables.

 

 

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.

 

 

VCs and private equity firms usually press companies for low pre-money valuations and often demand other onerous terms.

 

 

The financing requirements of the companies targeted by Seaside are generally too small to be of interest to firms managing massive pools of capital.