Banker's Guide to New Small Business Finance, + Website

CHARLES H. GREEN is a seasoned finance professional with over 30 years of experience advising, financing, and investing in the small business sector. His experience includes tenure as a commercial banker and venture capitalist.He also founded and served as President and CEO of Sunrise Bank of Atlanta. He regularly consults with business owners and bankers, writes about financial topics, and teaches finance through seminars and conferences produced by the enterprise he founded, the Small Business Finance Institute (www.SBFI.org).

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