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Finance Options - Debt and Equity

"We Consult on ALL these options, Prepare, then Refer to the BEST providers."  Some start with our COMPLIMENTARY Overview Review

  • Conventional Banks
  • Government
  • Community Banks
  • Credit Unions
  • Non-Bank Lenders
  • Alternative Lenders
  • Bridge Lenders
  • Local Family Offices
  • High-Net-Worth Individuals
  • Community Collaboratives
  • Other types of Alternative Lenders

  • Cash Flow Lenders
  • Equipment Lenders
  • Vehicle Lenders
  • Real Estate Lenders

  • Conventional (65%-90% Loan to Value, LTV - or Cost, LTC)
  • Small Business Administration (SBA - up to 90% LTV or LTC on Commercial Real Estate or general business development; good interest rates)
  • Second (remaining 10%-35% LTV or LTC; higher interest rate; though most CRE lenders don't take or are not allowed to take second position)
  • Line of Credit (including Credit Cards, revolving Seconds; higher interest rate)
  • Participation (discounted equity purchases after completely paid off)
  • Mezzanine (lender can convert to an equity interest in case of default, subordinate to senior lenders; higher interest rate)
  • Convertable Note (considered an equity play)
  • Syndicated Loan (combines sources to reduce risk, or for very large loans)
  • Hard Money (based on asset value versus individual credit score; short term; higher interest rate)
  • CrowdFinance (many, often small, contributers, generally through an online portal) -
        Debt or Equity - equity portals require SEC registration

  • CONTACT US for creative combinations to accomplish 100% financing

"We Consult on ALL these options, Prepare, then Refer to the BEST providers."
Other Sources:
  • Suppliers (who profit from your existence or growth)
  • Customers:
    • Give a discount for a year for upfront cash
    • Commit to a subscription model for a year
    • Government contract with big payment up front

  • Grants (Government, Veteran Benefit, Non-Profit, ...)
  • Sponsorships (for sponsors' exposure on buildings/vehicles/marketing/websites, at events, ...)
  • Government Programs that fit into local/national leadership agendas

  • Owner Carry:
    • Seller finances the Buyer
    • 1-2 years to launch project or business
    • Longer if mutually beneficial
    • The note can be sold for the lump sum Seller may need or prefer

  • Loan Assumptions

Buying Businesses:
  • Set up Lenders in advance based on the collateral to be acquired
  • Be their salesman or consultant for equity and subsistance compensation until you own the company
  • May open up other options, such as Owner Carry
    • With the option to buy at the current price
    • Start implementing your growth policies in advance
    • You'll also learn quickly if you want the company
  • Build relationship so Seller wants you at the helm, not an impersonal Buyer from a different region or culture
  • Once the Seller is very happy to have you as the buyer:
    • Have Seller finance equipment real estate, cash-flow, etc to maximum
    • Assume the loans

More in the book description, Customer-Funded Business

Debt Lenders

Equity Funders

Additions appreciated


PROSPER SYSTEMS, LLC (.biz)  •  Kenton H Johnson (.com), Founding Member  •  COMPLIMENTARY Overview Review

Schedule a Call or Mtg (9am - 7pm USA Mtn Time, by Video/Audio Conference, Phone or In Person)

Copyright © 2018-2020, Prosper Systems LLC, Denver CO USA. All rights reserved. Latest update, 2/10/2020, KHJ