The majority of small business owners are all facing the same challenge: the need for a cash infusion to jump start sales, expand into new markets, or continue to sustain growth. There are a multitude of financing sources of funding available to small business owners, and each source has its limitations and requirements. Gold Coast Professional Services has found that Private Placements are an attractive alternative for growing companies.

Private placement or private investment capital, is money invested in your company -- usually from private investors in the form of stocks and sometimes bonds. In the United States, private placement often does not need to be registered with the Securities Exchange Commission.
Consider this: the ideal small business candidate is often a company in the third stage of finance and is looking for growth or expansion funding. It is not the rule that private placement applies only to start-ups with a company that has completed product development, conducted a market-feasibility study and business planning. Many times start-up funding can be generated from what we term “angel investors”. But know this -- where ever the source of your cash flow is, we’ll find it for you.

Consider the benefits:

• A high degree of flexibility in amount of financing ranging from 100 thousand to 10-20 million with combinations of debt, equity, or debt and equity capital.
• Investors are more patient than venture capitalists, often seeking 10 to 20% return on investments over a longer term of 5 to 10 years.
• Much lower costs than approaching venture capitalists or selling the stock to the public as an IPO (Initial Public Offering).
• Quicker form of raising money than usual venture capital markets.

The money from private placements will come from accredited investors defined by the SEC Rule 501 under Regulation D as:

• an individual earning 200k per year.
• a household with income of $300K per year or having a net worth over $1M.
• or venture funds, some banks and other institutions.

At Gold Coast Professional Services, we connect with bankers, attorneys, and accountants who can network your small business with a private investor