Banker′s Guide to New Small Business Finance + Website – Venture Deals, Crowdfunding, Private Equity, and Technology

<p>Figures and Tables xi</p>
<p>Preface xiii</p>
<p>Acknowledgments xix</p>
<p>About the Author xxi</p>
<p>Part One: Survey of Funding Small Business 1</p>
<p>Chapter 1: How Small Businesses Are Funded 3</p>
<p>Defining Small Business 3</p>
<p>ABCs of Small Business Funding 8</p>
<p>Usual Suspects Providing Business Capital 10</p>
<p>The Rise of Alternative Financing 12</p>
<p>Chapter 2: Elusive Nature of Bank Funding 15</p>
<p>Risk Appetite Is an Oxymoron 16</p>
<p>Source of Bank Funding Limits Its Use 17</p>
<p>Small Business Credit Is Difficult to Scale 19</p>
<p>Loan and Bank Size Are Inversely Related 20</p>
<p>Chapter 3: Capital Market Disruptions, Post–2008 23</p>
<p>Didn′t Anyone See Bubble Coming? 23</p>
<p>This Time Was Different 25</p>
<p>Where Did Main Street Funding Go? 29</p>
<p>SBA Main Street′s Federal Bailout? 30</p>
<p>Supply versus Demand Did Anyone Ask for a Loan (and What Was the Answer)? 33</p>
<p>Post–Crisis Reflections on Financial Regulation 37</p>
<p>Part Two: A Perfect Storm Rising 43</p>
<p>Chapter 4: A Paradigm Shift Created by Amazon, Google, and Facebook 45</p>
<p>Amazon Creates Digital Trust 46</p>
<p>Who Answered All Those Questions Before? 49</p>
<p>Your Opinion Is (In)valuable 51</p>
<p>How Do These Changes Affect Small Business Lending? 54</p>
<p>Chapter 5: Private Equity In Search of ROI 59</p>
<p>The Fed′s Low Interest Policy and the Effects on the Private Investor 60</p>
<p>Wall Street Isn′t Main Street 60</p>
<p>First Buy In, Then Invest Up 62</p>
<p>A Cautionary Note about a 72 Percent APR 67</p>
<p>Chapter 6: First Change the Marketplace, Then Change the Market 71</p>
<p>Old Thinking/Technology Can Stifle Credit 72</p>
<p>Morality and Money 78</p>
<p>The Unintended Consequences of Old Law 79</p>
<p>Capital Markets Go Digital 81</p>
<p>Pattern Recognition Data Is the Game Changer 82</p>
<p>Different Processes and Different Views 84</p>
<p>Crowdfunding versus the Crowd That Got Funding 86</p>
<p>The Rise in Alternative Paths to Source Funding 88</p>
<p>Billions Went Missing and No One Noticed? 89</p>
<p>Part Three: Digital Dynamics in Small Business Funding 93</p>
<p>Chapter 7: Funders and Lenders Online Capital Providers 95</p>
<p>Innovative Funding Marketplace 95</p>
<p>Online Funders: Purchasing Future Receipts 97</p>
<p>Online Lenders: Money from the Cloud 106</p>
<p>Chapter 8: Crowdfunding with Donors, Innovators, Loaners, and Shareholders 125</p>
<p>Donors Funding Arts, Solving Problems, and Floating Local Businesses with No Strings Attached 125</p>
<p>Innovators Buy It, I′ll Build It 133</p>
<p>Loaners Brother Can You Refinance My Visa? 135</p>
<p>Shareholders Online Market for Equity 140</p>
<p>Crowded Elevator? 147</p>
<p>Chapter 9: Other Innovative Funding Sources on the Rise 151</p>
<p>Factoring in the Digital Age 151</p>
<p>Working Capital Management as a Financing Strategy 156</p>
<p>Investing Retirement Funds in Self, Inc. 157</p>
<p>No Store, No Hours, No Bank, No Problem Virtual Lenders for Virtual Merchants 160</p>
<p>Taking as Much Time as Needed to Repay 164</p>
<p>Chapter 10: Capital Guides Online Resources to Find, Coach, and Assist Borrowers and Lenders 167</p>
<p>Loan Brokers 168</p>
<p>Other Online Resources 174</p>
<p>Chapter 11: What Innovation Means for Bank Lending 177</p>
<p>Competition Erodes Banks′ Share of Small Business Loans (Again) 178</p>
<p>What Banks Can Fund (but Won′t) versus What Banks Cannot Fund (but Will) 180</p>
<p>The Best Defense Is Still a Good Offense 182</p>
<p>Banks Still Have the Most Customers and Cheapest Bucks in Town 184</p>
<p>What′s Next? Character Redux, Rise of Alternative Payments, and? 186</p>
<p>About the Companion Website 191</p>
<p>Index 193</p>