Finding funding, whether from loans or investors, is one of the greatest challenges for small and medium-sized businesses. However, there are some options available. Using "nontraditional" lenders is one way to get new small businesses started and give those owners their chance to succeed. Here in Florida, we have Small Business Development Centers (SBDC) including one here at UCF. The people there provide similar assistance to new and existing business owners with the mission of creating jobs and positive economic impact here in central Florida.

Module Objectives

After the completion of this module you will be able to:

Identify and explain internal sources of funds
Explain factoring and its advantages and disadvantages
Identify and explain traditional lending sources
Identify and explain non-traditional lending sources
Identify and explain the advantages and disadvantage of equity partners
Calculate the cost of debt
Explain the risks associated with business debt

Content/Activities

Before class:

Take this short course: Small Business Financing Options (30 mins). Note: the pop-up window "course registration" appears as if you need to complete an entire sheet of demographic info. You only have to enter a stage of your hypothetical business, then you can get in to the course.
Read this: Explore Loans, Grants and Funding
Read this article: Factoring
Read this article: Advantages of Internal Funding
Watch this Video: Introducing Long-Term Financing (only Section #3)https://www.linkedin.com/learning/corporate-finance-foundations/introducing-long-term-financing?u=57691257

During class:

Team exercise: Select a specific funding option and present the advantages & disadvantages of that option to the class. (This assignment is not graded.)
Simulation Practice Rounds # 3, 4, 5
Assessment

Complete the Pre-Class Quiz. This is a graded assessment worth 15 points.

Additional Resources

(Note: these resources will not be tested on the quiz.)
Article: The Money Game - Getting Your Due by Simona Covel (WSJ) *Requires login to ProQuest via UCF's library for access to full text of article.

Module Objectives

Content/Activities

Assessment

Additional Resources