We are no longer accepting new clients.

Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Business startup financing often comes with a catch

Securing startup capital is a major hurdle for entrepreneurs in Colorado, even when their plans seem sound and their ideas are good. High street banks follow strict underwriting guidelines that make borrowing a challenge for entrepreneurs who cannot provide a track record. Even loans guaranteed by the Small Business Administration can be difficult to qualify for unless the applicant has collateral to put up and an excellent credit history.

Personal savings, friends and family members are common sources of new business seed capital, but this type of borrowing involves taking on a different type of risk. If the commercial venture fails or does not perform as well as expected, entrepreneurs who have exhausted their savings or borrowed from loved ones could find themselves financially vulnerable or shunned. The online crowdfunding offered by websites like Kickstarter allows entrepreneurs to obtain startup funds from the general public, but the marketplace is crowded and ideas that are not newsworthy or novel may struggle to attract attention.

Venture capitalists and angel investors may be willing to take risks that conventional lenders would shy away from, but they will often expect an equity position in the new company in return. Angel investors could be the more attractive of the two options as they usually have industry experience and may prove to be valuable sources of advice and guidance as well as money.

Entrepreneurs who have been turned down by traditional banks sometimes seize the opportunity when alternative lenders are willing to extend credit. This can be an expensive mistake. Attorneys with business law experience could scrutinize the terms being offered by alternative lenders and draw attention to provisions that may become problematic in the future. Legal counsel could also identify legal issues that a new business could encounter and suggest ways to avoid or address them.

Column Image

“I used the Bryan E. Kuhn, Counselor at Law, P.C. team to help me with a case. They were always professional, upfront, and positive providing guidance while keeping me informed.”
– L.H.

“Everyone at the firm was professional, responsive and courteous. I would definitely recommend this firm if you are in need of superior legal assistance.”
– J.S.

“Bryan and his law firm operate with great professionalism and personal touch. I appreciated the way he and his team offered transparent communication.”
– N.S.

“The team was very professional in helping me to get through an uncomfortable ADA situation at my workplace. This was a very good legal experience. I would recommend Bryan E. Kuhn & team to anyone who needs work related legal help.”
– D.L.

“Bryan, Katie, and all the staff in this office are super fast to respond, expert in their fields, and always helpful. We have been extremely pleased with their services for our small business.”
– T.Z.

Column Image


Bg Subscribe
Contact Our Firm

Office Location

Bryan E. Kuhn, Counselor at Law, P.C.
1660 Lincoln Street Suite 2330
Denver, CO 80264

Local: 303-424-4286
Toll Free: 866-693-5541
Fax: 303-425-4013
Denver Law Office Map
FindLaw Network
Click for the BBB Business Review of this Attorneys & Lawyers - Employment Litigation in Denver CO