The True Cost of Capital – Part 3

With everyone marketing “small business friendly” capital differently, it’s hard to parse out how friendly it really is.

In Part 1, we covered the importance of considering MOIC (Multiple on Invested Capital) or the actual dollars owed. In Part 2, we discussed measuring the time to repay. This week in Part 3, our finale to the series, we’re tying it all together.

Generally speaking, the longer the duration of the loan, the higher the MOIC. However, that doesn’t always mean choosing the shortest payback / lowest MOIC.

Before Bonside, the trade-off was:

• More capital, longer duration, personal guarantees, difficult to access

• Less capital, shorter duration, no guarantees, easy to access

At Bonside, we’re focused on the middle ground for businesses generating $2m+ in revenues: the right amount of capital, medium duration, no guarantees. To defend this, we partner exclusively with the top performers in brick-and-mortar, and run a tight diligence process.

If you’ve been searching for the right option to finance your build-outs, grow your team and expand your offerings – welcome to Bonside.