A private placement program (PPP) is a special type of financing program offered by Commercial Lending Corporation and made available to businesses of all sizes. You do not have to be a large multi-national firm to apply for a PPP. Both small mom and pop operations and medium companies are also able to apply for a PPP. This kind of commercial loan is designed to help a business operation raise capital and cash through private sources by soliciting interested investors.
Some people get a PPP confused with selling stock on the open markets. While you do have to put together and prepare a Regulation D Offering and submit the appropriate paperwork to the SEC and other government agencies, you are not selling stock on the open market. Rather, you are providing a percentage interest in your company as collateral in return for the amount of money the private investors want to lend you. Your company remains private. You retain full ownership of the operation and continue to run it as you have, without any input or interference from your investors.
There can be different ways to satisfy the terms and conditions of a PPP obtained through Commercial Lending Corporation (CLC). Some of your investors may want you to make regular monthly payments until they are fully paid back. Others might prefer one large, lump sum payment, along with interest at the end of a specific period of time. CLC will let you know exactly what type of repayment your investors require, so that you do not default on your obligations.