Cedar Rapids Business Financing Lawyers

One of the central aspects of running a business involves both finding and sustaining funds. As such, Cedar Rapids business financing lawyers understand the various obstacles that people may face when they first begin to establish their business, during financial hardships, or when company expansion is on the horizon. Businesses in Cedar Rapids do not have to shy away from seeking business financing as a long-term solution.

The lawyers at Arenson Law Group, PC are committed to helping those who need guidance choosing a business financing solution in Cedar Rapids. Our lawyers have worked with many companies in nearly every area of business financing and are ready to put their years of experience to work for you.

Types of Business Financing

If you’re looking to start up a new business or if your current business is in need of additional funding, there are many avenues of financing that may benefit you greatly. Some types of business financing include the following:

• Loans
• Grants
• Private investments
• Venture capital
• Initial public offerings (IPOs)
• Warrants

Understanding the benefits and disadvantages of these types of financing can be challenging. With the help of our business lawyers at Arenson Law Group, PC, you can rest assured that you are making a sound decision for your company.

Frequently Asked Questions About Business Financing

Whether you are considering taking out a business loan or if you are considering equity investment, the Cedar Rapids business attorneys of Arenson Law Group, PC are here to help you make the right choice for you and your business. We want to make sure business owners understand all of the legal options available to them, so we’ve provided a few answers to some frequently asked questions below. To discuss your specific situation with an experienced attorney, contact us at (319) 363-8199 to schedule a consultation.

How can I raise money for my business?

 One of the most common ways that business owners raise money is to borrow money from family members and friends or through a commercial lender. Other business owners choose to raise money by selling ownership interests (often referred to as “equity”) in their business. Depending on your business, your personal goals for the business, and your company’s financial needs, either option might be right for you. It is a good idea to consult with an experienced business attorney to determine which route might be the best one to take for your business.

How do business loans work?

Business loans operate under the same principles as personal loans. You will work with the lender and will discuss interest rates and payment schedules for your loan and will sign a promissory note that establishes the agreement in writing. You may need to provide collateral for the loan, which could include valuable personal property (your home or other assets) to secure the loan in case you are unable to repay the money. Unlike selling equity, the lender will not have any ownership interest in your business and will instead count on being repaid with interest in return for lending you the money.

How do I sell ownership interests?

If you are interested in raising money by allowing individuals or other entities to co-own your business, you will need to decide how you want to structure your business. This could mean establishing a general partnership, a limited liability company (LLC), a corporation, or a limited partnership. It is important to discuss your options with an experienced business attorney, because each of these options has specific benefits and drawbacks, depending on your particular situation.

Contact a Business Financing Lawyer in Cedar Rapids

Cedar Rapids business owners in need of financing often face challenging issues when dealing with their business’s financial integrity. Our business lawyers at Arenson Law Group, PC have a thorough understanding of business financing, and can help you fully examine any financial decisions in order to ensure that you are making a responsible choice. Call (319) 363-8199 today to speak with a business financing lawyer in Cedar Rapids about your legal options.

Written by James H. Arenson