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Financial Tools Comparison
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|
Leasing |
Going Public |
Venture Capital |
Bank Loan |
Private Investor |
Government Programs |
Invoice Discounting/ Factoring |
|
Days to Funding |
15 to 30 |
120 to 270 |
90 to 180 |
60 to 180 |
15 to 90 |
60 to 180 |
2 to 10 |
|
Your Credit Affects Funding |
Yes |
Yes |
Yes |
Yes |
Likely |
Yes |
No |
|
Loss of Equity |
No |
Yes |
Yes |
No |
Yes |
No |
No |
|
Loss of Control |
No |
Varies |
Yes |
No |
Varies |
Varies |
No |
|
Limited to asset value |
Yes |
No |
No |
Yes |
Possible |
Yes |
No |
|
Profitability Requirement |
Likely |
Yes |
Likely |
Yes |
Likely |
Likely |
No |
|
On-going monitoring |
No |
Yes |
Yes |
Yes |
Yes |
Yes |
No |
|
Funding tied to sales |
No |
No |
No |
No |
No |
No |
Yes |
|
Reduce overhead |
No |
No |
No |
No |
No |
No |
Yes |
|
Free Credit Checking |
No |
No |
No |
No |
No |
No |
Yes |
|
Easy Application |
No |
No |
No |
No |
Varies |
No |
Yes |
Note: Chart comparisons are for illustration purposes only. Each tool has
advantages depending on the industry, specific stage of the business and other factors.
All options should be explored and understood before committing to a particular
financial tool.
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