Financing is necessary for a wide variety of business startups. When Steve Jobs and Steve Wozniak created the prototype of the first Apple I computer in 1976, they first pitched the idea to their employers.When this failed, they had to find a way to scrape together the $1350 cost of producing the circuit board.
To do so, Woz sold his programmable Hewlett-Packard calculator for $250 and Jobs sold his Volkswagen Bus for $1500.
Building a single prototype was one thing, but manufacturing the Apple II, which cost several hundred dollars each, was quite another.
So the two Steves pitched their idea to Commodore Business Machines, which they knew was eager to get into the fledgling microcomputer market, for $100,000 cash, some stock and $36,000-a-year salaries for themselves. Fortunately for Jobs and Wozniak, Jack Tramiel, Commodore’s founder, thought it was ridiculous to buy a company that operated out of a garage.
The two Steves eventually teamed up with Mike Markkula, who provided both the funding and the managerial experience they needed to get their company off the ground.
Entrepreneurs today who need capital to start a business or to expand an existing one have many options available to them, one of them being commercial finance (another name for which is asset-based lending). It is a type of secured business loan.
Continue Reading »Commercial Finance Options for Business Capital