It is common for a business to have questions about whether private placement program offerings are right for their organization. Understanding how private placement works, and its requirements, can help make your decision easier. Obtaining funds from private sources is able to inject additional resources into your business and provide you with the financing you need for your project.
In order to determine if a private placement program would work for your business, the first thing you need to decide is the amount of money you require. A private placement program is ideal any time you require capital financing, from $1 million to $50 million. The money can be used to open a restaurant, build a highrise office building, or any other type of real estate transaction, or for raising money for high growth opportunities. In the event you require less money, you are still able to take advantage of other commercial loan programs available through Commercial Lending Corporation.
You do need to make sure you prepare a Regulation D offering for your investors for private placement programs. This type of offering is different from going public with your business. However, there are still SEC and state regulations which you need to make sure you properly follow, to avoid a rescission issue — or the unmaking of a contract — later on with your investors. Having an offering is the preferred method, when dealing with private investors. They need a method for investing in the transaction, and your providing a tangible solution makes it easier to secure private funding. Additionally, obtaining funding is often accomplished by targeting a larger number of smaller investors, rather than just one or two wealthy investors. Commercial Lending Corporation can help you learn more about this program to see if it is right for your business.
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