Advice to Entrepreneurs from Lee Tabas
President, TABASFUNDING

      As a banker for more than 30 years, I have some credentials to provide advice. First, don’t underestimate the value of having a well written business plan for what you want to do. Make sure that you have someone spell check the plan. Length is not an advantage in a small business plan. 10 pages maximum- busy people don’t have time to wade through duplication and statistics that you copied from the internet. Make it concise.

      Don’t skimp on paying to have an accountant or MBA or other financially capable person help you put numbers to what you are doing. What financiers look for is someone who can “do numbers”. It does not have to be you, but you have to have access to someone who can do it.

Here are sources of funding in order of desirability:

• Your local bank or bank in cooperation with the Small Business Administration- this will be the cheapest source of funds. However, you may not get all that you need, and you may not get it when you need it.
• Private Loan or Investment from Friends and Family- Why not let others earn more than they could in the general market by backing you in your business enterprise? Bad Idea- Do not ask any relatives to co-sign! It is OK for them to risk their own money, but you don’t want to get them involved in leveraging for you, or possible disputes with outsiders.
• TABASFUNDING- we are more expensive than the bank, but we can respond quickly for amounts of $100,000 to $750,000, and we don’t obsess over collateral.
• Credit Cards- often for smaller amounts, borrowers can get money on credit cards quickly, and with no collateral. That has too be worth something in terms of the high interest rates that you pay.
• Selling/ Pledging Accounts receivable to private lenders- this is an expensive type of funding that works in some cases and industries, such as the clothing industry, where such funding is typical.
• Selling Stock- hard to do correctly. Either you do a public offering, which is tremendously expensive, or if you sell shares privately, you need heavy legal and accounting help. Without that you leave yourself open to lawsuits if things don’t work out.

Best Wishes with your business and call us for further information.