How to Qualify for Private Placement
- Our partners prefer 3 years in business or more (exceptions)
- A minimum of $1 million in gross annual revenues (exceptions)
- If start-up, extensive financial, technical and operational experienced management team
- A complete and comprehensive business plan
- A private placement memorandum (PPM) disclosing the full facts of the investment and business
- A law firm experienced in private placement (we have a network of attorneys in every state)
What is required for a Private Placement?
Alternative Business Capital will help prepare the required documents necessary for a Private Placement Offering, including;
- A Complete and Comprehensive Business Plan
- Private Placement Memorandum (PPM)
- Formation of Limited Liability Company (LLC)
- Employee Identification Number (EIN)
- Limited Partnership Agreement (LP)
- Limited Liability Regulations and Operating Agreement
- Policies and Procedures Manual
- Investment Partnership Agreement
- Security Exchange Commission (SEC) Form D
- Subscription Agreement
These items are usually required by the SEC, investors and bankers. When they have these professionally prepared package, it becomes much easier to raise money quickly from accredited and institutional investors.
Who Can Invest in Your Company?
Not everyone is qualified to invest in your company. The money raised from private placements comes accredited investors and/or institutions defined by the Security and Exchange Commission (SEC) Rule 501 under Regulation D. To become accredited;
- an investor must earn a minimum of $200k per year, or
- have a household income of $300k per year, or
- have a minimum net worth of $1 million and more, plus,
- funds can come from venture funds, banks or other institutions
Alternative Business Capital has partnered with Small Business Investment Companies (SBIC), Investment Bankers and Accredited Investors to assist us in offering the most competitive rates and fees in the industry, while helping you attract capital and maintain control of your business.
- Is your business ready to go to the next level?
How much will it cost?
Alternative Business Capital is not a law firm nor a registered investment advisor and nothing we recommend should be considered legal or investment advice. If you require legal counsel, we suggest you hire an independent attorney.