Issue link: http://read.dmtmag.com/i/48221
WORLD FENCE NEWS • DECEMBER 2011 • 73 growth and even more future sales growth potential is a much more at- tractive investment to potential equity partners. Financing working capital Working capital shortages are a short-term problem that can be fi- nanced with senior debt or mezzanine debt. In the alternative, short-term fi- nancing is also available from factor- ing or A/R financing providers who look to certain accounts receivable and inventory assets as collateral. A combination of these types of alternative strategies can boost avail- able working capital to the point where the need for an equity partner disap- pears. So how do you decide which fi- nancing tool to use for the job? "If you are tempted to consider an equity injection to resolve growing pains, you must also consider possible partnership risk along the way and the true cost that equity can bring down the road," says Vaitkunas. The best working capital solution may be an accounts receivable line of credit, which costs less than equity and does not introduce partnership risk. The bottom line: There are many alternative options available to busi- nesses in need of a cash infusion other than taking on a partner or shareholder. It is important for every business owner to know and understand all of the options before making such an im- portant decision. Knowing about all the options that are available — and understanding when it's best to use which one — could prevent a lot of grief and hard- ship for a lot of business owners. Tom Klausen is the senior vice- president of First Vancouver Finance in Vancouver, B.C. Klausen has had extensive experience in providing al- ternative financing solutions to small business owners, and also provides business management consulting serv- ices to both traditional and non-tradi- tional lenders throughout North America. He can be contacted at 604-988- 1490 or via e-mail at TKlausen@fvf.ca or visit http://www.fvf.ca. Specifically formulated for ease-of- application, Standard Paints exterior Wood DefenderTM stains help protect and beautify wood structures. With one coat you are assured of uniform application with no runs, drips or back brushing. Mildew resistant, Wood Defender stains contain ultraviolet inhibitors to stabilize wood color and provide long lasting wood protection. Our products, techniques and equipment are proven by hundreds of successful applicators that we have trained. INQUIRE ABOUT EQUIPMENT, START UP PACKAGES AND TRAINING REGISTER TODAY! 940 S. 6th Ave. Mansfield, TX 76063 WWW.WOODDEFENDER.COM • (817) 477-5060 • (817) 477-5030 Be Sure To Visit Us At FENCETECH'12 Booth No. 108 Mail us your cartoon ideas for Pete and Jake! We will give full editorial credit if used. Send to: World Fence News 6101 W. Courtyard Dr. • Bldg. 3, Ste. 115 Austin, Texas 78730 PRO PACKAGE ST-250 Options: • Loader • Forklift • Concrete Breaker • Post Tamper • Post Puller • Concrete Mixer and Dispenser • Installink Chainlink Dispenser • Auto Post Driver (one person operation) 25-30 XT 2-25 TLD-125 Six Models to Choose From "The ultimate in boring and fencing equipment" 244 W. State Route 4, Cathlamet, WA 98612 (360) 795-3617 Seeing is believing - Call today for FREE video or to sc a demonstr THE FENCELINE IS HERE TO HELP o hedule ation! Looking for something? Need to know in a hurr FenceLine product locator ser Use the W rld Fence News y? vice! 1-800-231-0275 in the U.S. & Canada. See us at FenceTech 2012 Booth #1108 Guaranteed Fence And Deck Sealer