Banker's Guide to New Small Business Finance, + Website: Venture Deals, Crowdfunding, Private Equity, and Technology (Wiley Finance)

**Detailed, actionable guidance for expanding your revenue in the face of a new virtual market**Written by industry authority Charles H. Green, __Banker's Guide to New Small Business Finance__ explains how a financial bust from one perfect storm—the real estate bubble and the liquidity collapse in capital markets—is leading to a boom in the market for innovative lenders that advance funds to small business owners for growth. In the book, Green skillfully reveals how the early lending pioneers capitalized on this emerging market, along with advancements in technology, to reshape small company funding. Through a discussion of the developing field of crowdfunding and the cottage industry that is quickly rising around the ability to sell business equity via the Internet, __Banker's Guide to New Small Business Finance__ covers how small businesses are funded; capital market disruptions; the paradigm shift created by Google, Amazon, and Facebook; private equity in search of ROI; lenders, funders, and places to find money; digital lenders; non-traditional funding; digital capital brokers; and much more. * Covers distinctive ideas that are challenging bank domination of the small lending marketplace * Provides insight into how each lender works, as well as their application grid, pricing model, and management outlook * Offers suggestions on how to engage or compete with each entity, as well as contact information to call them directly * Includes a companion website with online tools and supplemental materials to enhance key concepts discussed in the book If you're a small business financing professional, __Banker's Guide to New Small Business Finance__ gives you authoritative advice on everything you need to adapt and thrive in this rapidly growing business environment. Banker’s Guide to New Small Business Finance: Venture Deals, Crowdfunding, Private Equity, and Technology 5 Copyright 6 Contents 9 Figures and Tables 13 Preface 15 Acknowledgments 21 About the Author 23 Part One: Survey of Funding Small Business 25 Chapter 1: How Small Businesses Are Funded 27 Defining Small Business 27 ABCs of Small Business Funding 32 Usual Suspects Providing Business Capital 34 The Rise of Alternative Financing 36 Notes 38 Chapter 2: Elusive Nature of Bank Funding 39 Risk Appetite Is an Oxymoron 40 Source of Bank Funding Limits Its Use 41 Small Business Credit Is Difficult to Scale 43 Loan and Bank Size Are Inversely Related 44 Chapter 3: Capital Market Disruptions, Post-2008 47 Didn’t Anyone See Bubble Coming? 47 This Time Was Different 49 Where Did Main Street Funding Go? 53 SBA—Main Street’s Federal Bailout? 54 Supply versus Demand—Did Anyone Ask for a Loan (and What Was the Answer)? 57 Post-Crisis Reflections on Financial Regulation 61 Notes 65 Part Two: A Perfect Storm Rising 67 Chapter 4: A Paradigm Shift Created by Amazon, Google, and Facebook 69 Amazon Creates Digital Trust 70 Who Answered All Those Questions Before? 73 Your Opinion Is (In)valuable 75 How Do These Changes Affect Small Business Lending? 78 Lending Diversity? 79 Notes 82 Chapter 5: Private Equity In Search of ROI 83 The Fed’s Low Interest Policy and the Effects on the Private Investor 84 Wall Street Isn’t Main Street 84 First Buy In, Then Invest Up 86 A Cautionary Note about a 72 Percent APR 91 Notes 93 Chapter 6: First Change the Marketplace, Then Change the Market 95 Old Thinking/Technology Can Stifle Credit 96 Managed Solutions 100 Morality and Money 102 The Unintended Consequences of Old Law 103 Capital Markets Go Digital 105 Pattern Recognition—Data Is the Game Changer 106 Different Processes and Different Views 108 Crowdfunding versus the Crowd That Got Funding 110 The Rise in Alternative Paths to Source Funding 112 Billions Went Missing and No One Noticed? 113 Notes 114 Part Three: Digital Dynamics in Small Business Funding 117 Chapter 7: Funders and Lenders—Online Capital Providers 119 Innovative Funding Marketplace 119 Online Funders: Purchasing Future Receipts 121 When It Looks Like a Loan, Is It a Loan? 125 Judge Disagrees 127 Enter the Digital Age 128 Online Lenders: Money from the Cloud 130 Online Credit versus Traditional Bank Credit 131 Marketing for Clients 133 Gathering Application Information 134 Digitally-Assisted Underwriting in the Cloud 136 Old-Fashioned Number Crunching with a Twist 142 Fraud Detection 142 Loan Pricing 143 Loan Closing 144 Loan Servicing 145 Where Do Online Lenders Get Funding? 146 Notes 148 Chapter 8: Crowdfunding with Donors, Innovators, Loaners, and Shareholders 149 Donors—Funding Arts, Solving Problems, and Floating Local Businesses with No Strings Attached 149 Campaign Planning 152 Campaign Execution 154 Texting/Tweeting for Dollars 156 Innovators—Buy It, I’ll Build It 157 Loaners—Brother Can You Refinance My Visa? 159 Shareholders—Online Market for Equity 164 What Will the New Market Look Like? 168 Not Everyone Agrees: The Case against SoMoLend.com 169 Nothing Is Perfect 170 Crowded Elevator? 171 Notes 173 Chapter 9: Other Innovative Funding Sources on the Rise 175 Factoring in the Digital Age 175 A New Twist on an Old Business 177 eBay for A/R 178 Working Capital Management as a Financing Strategy 180 Investing Retirement Funds in Self, Inc. 181 401(k) Accounts 182 No Store, No Hours, No Bank, No Problem—Virtual Lenders for Virtual Merchants 184 Are You Kidding Me? 185 Taking as Much Time as Needed to Repay 188 Notes 189 Chapter 10: Capital Guides—Online Resources to Find, Coach, and Assist Borrowers and Lenders 191 Loan Brokers 192 Link Farms 194 Value-Added Resources 194 Other Online Resources 198 Chapter 11: What Innovation Means for Bank Lending 201 Competition Erodes Banks’ Share of Small Business Loans (Again) 202 What Banks Can Fund (but Won’t) versus What Banks Cannot Fund (but Will) 204 The Best Defense Is Still a Good Offense 206 Banks Still Have the Most Customers and Cheapest Bucks in Town 208 What’s Next? Character Redux, Rise of Alternative Payments, and? 210 Measuring Character 210 Cash Substitutes 212 What’s the Next Big Idea? 212 Notes 213 About the Companion Website 215 Index 217 End User License Agreement 225 "Detailed, actionable guidance for expanding your revenue in the face of a new virtual marketWritten by industry authority Charles H. Green, Banker's Guide to New Small Business Finance explains how a financial bust from one perfect storm--the real estate bubble and the liquidity collapse in capital markets--is leading to a boom in the market for innovative lenders that advance funds to small business owners for growth. In the book, Green skillfully reveals how the early lending pioneers capitalized on this emerging market, along with advancements in technology, to reshape small company funding. Through a discussion of the developing field of crowdfunding and the cottage industry that is quickly rising around the ability to sell business equity via the Internet, Banker's Guide to New Small Business Finance covers how small businesses are funded; capital market disruptions; the paradigm shift created by Google, Amazon, and Facebook; private equity in search of ROI; lenders, funders, and places to find money; digital lenders; non-traditional funding; digital capitol brokers; and much more. Covers distinctive ideas that are challenging bank domination of the small lending marketplace Provides insight into how each lender works, as well as their application grid, pricing model, and management outlook Offers suggestions on how to engage or compete with each entity, as well as contact information to call them directly Includes a companion website with online tools and supplemental materials to enhance key concepts discussed in the book If you're a small business financing professional, Banker's Guide to New Small Business Finance gives you authoritative advice on everything you need to adapt and thrive in this rapidly growing business environment"-- Provided by publisher Detailed, actionable guidance for expanding your revenue in the face of a new virtual market Written by industry authority Charles H. Green, Banker's Guide to New Small Business Finance explains how a financial bust from one perfect storm—the real estate bubble and the liquidity collapse in capital markets—is leading to a boom in the market for innovative lenders that advance funds to small business owners for growth. In the book, Green skillfully reveals how the early lending pioneers capitalized on this emerging market, along with advancements in technology, to reshape small company funding. Through a discussion of the developing field of crowdfunding and the cottage industry that is quickly rising around the ability to sell business equity via the Internet, Banker's Guide to New Small Business Finance covers how small businesses are funded; capital market disruptions; the paradigm shift created by Google, Amazon, and Facebook; private equity in search of ROI; lenders, funders, and places to find money; digital lenders; non-traditional funding; digital capital brokers; and much more. Covers distinctive ideas that are challenging bank domination of the small lending marketplace Provides insight into how each lender works, as well as their application grid, pricing model, and management outlook Offers suggestions on how to engage or compete with each entity, as well as contact information to call them directly Includes a companion website with online tools and supplemental materials to enhance key concepts discussed in the book If you're a small business financing professional, Banker's Guide to New Small Business Finance gives you authoritative advice on everything you need to adapt and thrive in this rapidly growing business environment. "This book provides active suggestions of how baking professionals can protect their client base and also expand their revenue in cooperation with alternative financing entities"-- Provided by publisher