How do I find a debt equity backer?

ByPam Newman

Opinions expressed by Entrepreneur contributors are their own.

I recently acquired a bankrupt company from a venture capital firm that invested over $7 million. I just purchased the major assets: websites, trademarks, branding, customer database (47,000 customers) and vendor lists.

It was a retail store making $8 million in sales in 2007. This store was to be chained into all 50 states but the capital group dumped it because of the economy. Now I am looking at major investment dollars to reestablish entry.

How do I find a debt equity backer? I'm looking at over $250,000 dollars right off the bat. The original owner is willing to lease me his retail building and staff me with one of his old managers. He won't support my venture, however. I'm looking at around 18 months to re-open.
Debt and equity backing are two different concepts.

通常你会利用传统的银行provide debt or search out various investors that are looking to be a debt backer vs. equity partner. A lot will depend on the profitability projections, your credit, etc., as to the ease of finding this backer. Also, they'll want to know what you are using the debt for...few will provide debt for operating so they'll be looking to see what types of assets you are using the funds for.

Equity backers are usually more open to risk as they are looking for opportunities for a higher return -- though bottom line is they want to see how this business is going to make money so they can get a return on their investment.

拜访你ur accountant for specifics that will work for what you are hoping to achieve.
Wavy Line
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president ofRPPC, Inc., which provides customized business development services.

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