Square One Funding welcomes new Investors/Private equity and Lenders to join our team.
What type of Investors/Lenders does Square One Funding have and look for?
• Private equity lenders/investors
• Hard money lenders/investors
• Private investors/lenders
• Angel investors
• Venture capital (V/C)
• Direct Lenders
* NON-Bank Lenders
Many great ideas are coming from people worldwide who are seeking funding for a wide variety of needs, from starting up a new business, expanding an existing business, personal loans, alternative energy projects, the entertainment industry, the health care industry, and inventors, even movie ventures, on and on. These ventures present an investor/lender with a chance to get in on the ground floor. Agreeing on terms with the funding seekers allows them to take advantage of these great ideas well ahead of other Investors/Lenders.
*If you and your company would like to be part of our team, please contact us at info@square1funding.com. Please leave your contact info to discuss terms and policies.
All Investors / Lenders must be (accredited). A past investment(s) record may be subject to review prior to our team's acceptance.
The term Accredited Investor is defined in federal and state securities laws. By definition, it can apply to an individual as well as an organization, provided they meet one or more of the following criteria:
1. Any bank as defined in section 3(a)(2) of the Securities Act of 1933, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered under section 15 of the Securities Exchange Act of 1934; any insurance
company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment
Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets over $5,000,000; any employee benefit plan within the meaning of
The Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a
Bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets over $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
2. Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;
3. Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership not formed for the specific purpose of acquiring the securities offered, with total assets over $5,000,000;
4. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;
5. Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000;
6. Any natural person who had an individual income over $200,000 in each of the two most recent years or joint income with that person's spouse over $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
7. Any trust, with total assets over $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii)
8. Any entity in which all equity owners are accredited investors.
*Below are definitions of the types of Investors (this is mainly for your knowledge)
*Private equity lenders/investors:
When a company wants to raise money for its operations, it can do so in one of four ways: 1. Taking a loan from a bank, 2. Accepting public fixed deposits, 3. Issuing debentures or loan bonds, and 4. Issuing preference and equity shares.
Within these, when the company wants to issue preference or equity shares, it can do so either by a. doing an IPO, b. issuing rights shares, or c. doing a private placement.
Private placement means that if the amount the company wants to raise is comparatively low and it wants to avoid incurring the cost of the issue, it may approach a few wealthy investors to invest their money in the company. So equity or preference shares are issued to a few people at a minimum cost. This is called private placement. Wealthy investors are called private equity investors.
*Hard Money lenders/Investors:
Hard money lenders (HMLs) are typically private individuals or small groups that lend money (Hard money) based on the property you are buying, not on your credit score. Usually, these loans cost much more (percentage-wise) than an average mortgage, often up to twice what a regular mortgage does, plus high origination fees.
Who Needs Hard Money?
Developers and house flippers, amongst others, will use it to fund deals because you can often borrow up to 100% of your purchase price! On the other hand, hard money lenders will frequently require you to back up your loan with tangible assets. It is one way to go if you can buy a property and turn it quickly at a colossal profit and can't get a standard mortgage. Some investors use hard money to get into the property, do some quick fixes to raise the property value, and then get a new loan (based on the property's new, improved value) from a bank to pay off the hard money lender.
*Angel Investors:
An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.
*Venture Capital:
(Also known as VC or Venture) is a type of private equity capital typically provided for early-stage, high-potential, and growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. It is typical for venture capital investors to identify and back companies in high-technology industries such as biotechnology and ICT (information and communication technology). Venture capital typically comes from institutional investors and high-net-worth individuals and is pooled together by dedicated investment firms.
*Direct Lender:
Direct lending is a loan by a lender to a customer without using a third party; it gives the lender greater discretion in making loans.
*NON-BANK Lenders:
Non-bank lenders located throughout the country obtain their funds not from deposits but rather from the sale of notes and bonds on Wall Street and through private investors. They are, therefore, able to take on more risk and provide financing for tougher transactions that do not qualify for bank financing. This includes companies that are in Chapter 11, that have losses or a negative net worth, or that may have a tax lien.