New Solutions for Small Business White Paper Explores How Small Businesses Assess Options for Raising Capital in a Tough Economy

Washington DC (PRWEB) January 26, 2010

As an integral part of the Solutions for Small Business ( initiative, a new white paper explores how small-sized organizations are accessing capital and managing their capital requirements in a difficult economy.

The report, finds that small business leaders believe that the economic environment is improving, but are asking themselves how they will optimize their position during — what by all accounts will be — a modest recovery cycle.

The key question on many business owners minds is: How will small businesses fund growth?

The white paper reports that credit cards account for the largest single source of financing used by small businesses today, according to reports from the National Small Business Association. A full 59 percent of small-business respondents used credit cards in the past 12 months to finance their business, up from 49 percent in December 2008.

To be successful, however, small business executives will have to think more broadly about their financing options.

Most business owners, according to the white paper, think of bank financing when you say debt and venture capital when you say equity.

These two sources provide a significant amount of small business funding. However, there is a vast pool of working capital for businesses, and other ways to raise capital available from other entities. There are even providers of financing that looks a little like debt and a little like equity.

For instance, small businesses can consider factoring (selling invoices at a steep discount), asset-based financing (lines of credit against durable goods or mortgages owned by the business), as well as mezzanine financing, in which lenders reserve the right to convert their stake to an equity or ownership in the event of a default on the loan.

To learn more and download this white paper, offered at no charge, visit

About Solutions for Small Business

Solutions for Small Business is an initiative of CTAM, the Cable & Telecommunications Association for Marketing, which is dedicated to helping the cable business grow. Cable companies supporting the Solutions for Small Business initiative include Armstrong; Atlantic Broadband; Bresnan; Bright House; Cable One; Comcast; Cox; Insight, Mediacom, Optimum Business; Suddenlink and Time Warner Cable. Small business owners can learn about the initiative at

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