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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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Many factoring and merchant
cash advance firms offer amounts of
capital based only upon existing accounts receivable, which may be
insufficient funding for growth initiatives. |
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VCs and private
equity firms may press companies for low pre-money valuations and often
demand other onerous terms. |
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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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