Scott Perlov, a well-established presence in the Boulder, Colorado, legal community, practices as an associate with Bryan Cave, LLP, and handles diverse transactional and corporate matters. Among Scott Perlov’s areas of extensive knowledge are venture capital investments and early seed financing, and he assists clients in forming companies.
One fundamental issue faced by many entrepreneurs is how to fund a small business and translate a great idea into a marketable product or service. Start-up costs range from product development to disaster recovery, with proper cash flow management ensuring the viability of the enterprise until it achieves its go-to-market strategy.
One pathway toward funding beyond angel investors and venture firms involves revenue-based loans that involve the lender being paid back through a percentage of corporate revenue. Sources can be either local or national banks, or peer-to-peer services that have direct lending capacities without the overhead associated with traditional financial institutions.
In other cases, the small business may simply need a temporary cash infusion to supplement available funds. This may entail a short-term line of credit, which is typically secured against collateral such as business inventory or personal assets. Because of the high interest involved, it makes sense to have an active strategy in place for paying off this type of loan as soon as possible.
