Phantom Commercial Loans

The description of phantom commercial loans was inspired by earlier terminology related to phantom software or similar phrases which generally referred to high tech companies announcing that they were planning to issue new products at some vague point in the future. The usual motivation was to discourage consumers from buying a competitive product because the manufacturer would usually suggest that their yet to be released product would surpass an existing item in one or more ways. Because such a large percentage of these announcements were often not followed by the actual sale of software, the product which was announced with such fanfare but never ultimately made available for sale became known in many circles as phantom software because the intended use of the definition suggests something that only appears to be real.

Phantom Commercial Loans

Sadly a similar event is now occurring more frequently with respect to business financing and working capital finance. Lenders which either do not have sufficient funds for routine lending purposes or which do not really have a serious interest in actively providing commercial loans are nevertheless making announcements about the availability of their financial services for small businesses.

While it is hoped that this trend will not continue, it is simply too early to provide a confident prediction as to how this will unfold over the next year or so. Because borrowers should always have the most accurate information for any potential loan transactions, it is suggested that they take some extra precautions to ensure that any banking representations are fully examined and confirmed for accuracy before proceeding in attempts to secure working capital.… Read More

Need For Venture Capital Stable in Questionable Economy

The declining economic trend continues. An old axiom in business says that the best time to start a business is during an economic crisis, but all indications show a similar downward trend in available venture capital.

It seems that most venture capital groups sit with cash, overcoming the uncertainties that dominate the economy. Not because the money isn’t there; the group just doesn’t want to take the risk now. Why is that?

Need For Venture Capital Stable in Questionable Economy

The aim of most new companies is to make it an IPO or be acquired by another company. The failure rate in starting a business is very worrying. With rising fuel costs an increase in the costs of all other things, including capital equipment, labor and supplies, as well as construction and real estate. Companies that will not invest in their own businesses will most likely not acquire other companies. With the high costs associated with starting a business, people rely on initial profits to fund their new business.

Unfortunately, these businesses that open with little money do not survive. Consumers will not spend money today, competition is high, and the cost is too expensive to promote and advertise new business.

How Venture Capital Helps Small Businesses Become Big Businesses

The entry of money in the initial phase of start-up helps businesses to acquire equipment, real estate, and other things that are not related to day-to-day business operations. This type of investment helps businesses to grow very quickly. Usually.

In this economy, consumer confidence is low. People sit with cash reserves and don’t buy new products … from small appliances to cars, they either fix what they have or do without. The service industry was also hit. More consumers choose to do it themselves than hiring a company.

Venture capital allows beginners to buy the equipment and inventory needed to grow quickly and start making money faster than they should. This allows new companies to promote and reinvest, attract new and growing customers without turning the wheel by making money just to immediately buy something that is needed.

Helping the economy

The importance of venture capital now is that many companies that have been successful in the past year no longer make money. They are trapped in neutral conditions and do not produce significant benefits. Outdated equipment. Improvements needed for constant business infrastructure. They need to compete to survive and to do that, they must improve their situation.

This is not trickle down or trickle up theory; it is a tricky theory. The business of buying equipment to make money by attracting more customers and keeping people working builds things that other companies need to supply the company … You get the picture.

This is an economic network. That’s one thing that needs to be successful for our economic system to succeed. Even the United States Government is involved with offering money to certain industries. Say what you want, no matter your politics, but the Federal government is the largest venture capital provider in the country. Usually, venture … Read More