… and the Differences Between Them
Hello readers, and thank you for checking in on the Equipment Finance Journal, where we hope you find useful information that helps you meet your financial goals. As you know, our co-op provides capital that organizations use to acquire assets like equipment and software. If it makes sense to finance the purchase of an essential capital asset, call your OneWorld representative to see if we could help.
Over the years, we have partnered up with other firms across the nation that provide other complimentary financing solutions for our mutual customers. We partner with credible organizations with which we are proud to associate. One of those organizations is highlighted in today’s blog. Please continue reading for some valuable insight from Cole Harmonson of Far West Capital.
Your company is growing and it needs working capital, but where will it come from? How do you differentiate between angel investors and venture capital needs from other lending options such as banks and Far West Capital? Take a look at your options below:
1. Angel Investors
- Company is usually in the early stages of formation and need working capital to get the ideas off the ground
- Startups need a smaller amount of money
- There is less involvement from the ones funding, but the company still gives up some equity
2. Venture Capital Funding
- The business idea is more established and is ready for accelerated growth
- Funding usually involves corporate entities that manage the money invested
- Volume of money is larger
- Unlike angel investors and venture capitalists, banks do not require you to give up any equity
- Banks look at your current growth, not your future growth
- Banks take less risks on a company
4. Far West Capital
- Most of the time, it is cheaper than selling part of your company
- Solid way to finance growth when receivables grow faster than cash flow
- Less risk to you as the entrepreneur
- More flexibility – Use it if you grow. Don’t use it if you don’t need it
- More Control – We don’t tell you how to run your company
Far West Capital is a financial and factoring company that helps fund small to medium sized businesses to generate revenue, growth, refinance, start-up, acquisitions and turnarounds through accounts receivable, inventory-based and asset-based financing. We focus on providing a customized solution for each business, which could include accounts receivable financing, asset-based lending, asset-based revolver and more. Founded and led by entrepreneurs, Far West Capital understands the needs of business owners and seeks to build lasting relationships to help them find creative financial solutions.
Generally speaking, there isn’t a “right” or “wrong” financing option, but businesses have different needs and where a company receives its funding may be crucial to the future of the company. There may be a particular option that fits a company better than another. How do you know which is the best for your company? Give us a call at (512) 527-1100 and we can give you our best recommendation, whether it is Far West Capital or not.
4601 Spicewood Springs Rd
Building 2, Suite 200
Austin, TX 78759