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Legal Issues Behind Running A Small Business

YoungUpstarts

If you’re running a small business, you need to be on top of legal basics to make your business successful. To make sure you don’t encounter any nasty surprises, here are the common legal issues behind running a small business you should be familiar with: Contracts. Good luck in running your business!

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . However, some investors are using these tools in earlier, higher-risk companies. Governance.

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Let’s talk about your banking relationship

Berkonomics

For small businesses, there is such truth in that statement that you can trust the story to be based as fact from experience. There are great exceptions for growing businesses and for businesses that have a track record with a banker. The warning is real. Exceptions and good reasons to work on them.

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Who are the Major Revenue-Based Investing VCs?

David Teten

Unlike many RBI investors, a full 50% of our investment activity is in non-tech businesses. Like other RBI firms, Decathlon does not require warrants, governance involvement, or the types of financial covenants that are often associated with other venture debt type solutions. Monthly repayments as a percentage of revenue.”.

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Assessing The State Of And Options For Your Business During COVID-19 Fallout

YoungUpstarts

While businesses are generally seeing payment waivers across the board, the vast majority of contracts and virtually all loans include other obligations (or “covenants”) that if not satisfied or specifically waived still render the agreement in default. Small Business” Subchapter V of Chapter 11.

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10 Things the Bank Will Ask When You Need a Business Loan

Up and Running

One exception to the rule is that the federal Small Business Administration (SBA) has programs that guarantee some portion of startup costs for new businesses so banks can lend them money with the government, reducing the banks’ risk. Business plan. See Also Small Business Owners, Start Tracking Your Financial Metrics.

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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

When small business owners talk about taking on an additional investor, they typically say something nondescript like, “We’re taking on an angel investor.” Needless to say, if all else is equal, a traditional equity investment is better for you, the small business owner. Structure of the investment.