The founder of James River Capital shares 7 different ways to fund a business

As the founder of James River Capital, Paul Saunders helps new businesses raise money. He founded the company in 1995 and therefore is an entrepreneur himself. It is never easy for an entrepreneur to get others to believe in his or her idea, but Saunders has some simple strategies for raising capital. 

 

One piece of advice that Saunders has for new entrepreneurs is to use personal savings and other resources. This approach is called bootstrapping and includes borrowing money from your family and friends and using credit cards. Obviously, this is not without its risks, but you cannot expect investors to part with their hard-earned money if you and your family members do not believe in your idea enough to invest in it. 

 

In those cases where bootstrapping is insufficient or not viable, crowdfunding is an increasingly popular option. This approach requires a substantial social media presence but can be appealing to those entrepreneurs who have the time and know-how to build that online following, especially since the money generally does not need to be paid back. There have been some wildly successful startups that used crowdfunding for funding, such as Oculus, which was purchased by Facebook for $2 billion. 

 

Applying for a loan is another obvious choice. Although most people have heard of bank loans and SBA loans, there is also local funding available, which might be a better option for entrepreneurs with limited credit. In addition, Paul Saunders suggests trying to secure funding from an angel investor or venture capital investor if you have a very detailed business plan. 

 

Paul Saunders holds a BA from the University of Virginia and an MBA from the University of Chicago. Before founding James River Capital, he worked in corporate finance at Warburg Paribas Becker and as a commodities specialist at AG Becker. He then moved to Kidder, Peabody, and Co., where he eventually became president of their alternative investment division, KP Futures Management Corp. In 1995, he purchased the company and re-established it as James River Capital. In addition, he and his wife Vicki head up the Saunders Family Foundation in order to manage their philanthropic efforts. Learn more: https://www.crunchbase.com/organization/james-river-capital

BMG Bank Director Marcio Alaor Thinks More Investors Are Looking At The Auto Industry For Profits

 

The automobile industry in Brazil has been a very lucrative business. The three big American automakers produce models in factories in Brazil that are not sold in the United States. Those models run on ethanol, not gasoline, and they perform as well or better than gas power vehicles. Investors love the auto industry, but investing in a particular automaker can be risky. The American automakers were the first companies to give investors a chance to own a piece of the auto industry, and investors around the world jumped at the chance. Those investments have paid off, but there have been issues through the years that have cost investor’s money.

Marcio Alaor, the Vice-President of BMG, has been following the auto industry for years. BMG Bank has built a solid business lending money over the years, and he knows investing in car companies can be a risky business. One example of the risks involved is the recent Volkswagen debacle. Investors had no idea that the company was tweaking the emission control system. When authorities discovered the tampering, Volkswagen stock dropped substantially.

Marcio Alaor is known for having a keen investment sense. Alaor started his career at the bank as a young man fresh out of school, and he worked his way up the ranks and became the director and Vice-President of BMG Bank. BMG Bank is one of the premier banks in Brazil when it comes to consignment credit. The bank has a product called payroll loans that gives Brazilians the opportunity to borrow money using their income as collateral. Payroll loans are responsible for thousands of car loans, and Alaor says that part of the bank’s business is in a growth mode.

More people are coming into the bank and asking for a payroll loan to buy a car, according to Alaor. BMG Bank had to acquire two more banks recently to keep up with the demand. An article published by Exame.com mentioned Alaor’s interest in automobile companies and the history of IPO’s in that industry. Alaor believes people will continue to invest in automobile companies because the automobile business is making a lot of money.

Alaor has come a long way, thanks to hard work, intelligence and a willingness to help people. Alaor still helps people in his hometown of Santo Antonio do Monte. He donates his money and his time to the place where he started shining shoes to make ends meet. The people in his hometown love him now for being a banker that cares.