The financial world is growing and evolving at a fast rate. Businesses with under 500 employees make 48% of American jobs and 43.5% of GDP. As such, these businesses are an essential part of the economy. However, approximately 64% of these small businesses are reported to be struggling financially. A report by the British Chambers of Commerce (BCC) found that six percent of businesses have run out of cash.
The JOBS Act, which was formerly known as the Jumpstart Our Business Startups Act of 2012 has allowed smaller businesses to access potential investors. A lot of companies are now working with intermediaries including certified broker dealers to facilitate capital raises.
Broker-dealers can be individuals or firms. In order to conduct business in the United States, broker-dealers do FINRA licensing exams. One of the most talked-about FINRA examinations is the series 79 sponsorship. After passing these exams, and meeting other membership requirements, they are registered with FINRA. The right broker-dealer will lead to immense and significant success for your company. Keep reading to find out some of the top benefits working with a certified broker dealer.
Offers a Wide Range of Investment Solutions
Options and choice are key in the financial world. Your clients need a comprehensive planning approach to enable the protection, preservation, accumulation, and transfer of wealth. A broker-dealer will provide you with a wide array of investment solutions for your clients. As such, this will minimize risk, effort, and time used in researching, screening, and sourcing potential investments.
Brings Together Companies and Potential Investors
Many companies struggle with getting investors. A certified broker dealer will provide your company with a general solicitation offering. Broker-dealers create a connection between companies and investors. Furthermore, they match companies based on the type of issuer and the nature of the offering.
With access to a pool of investors, your company will get the capital it needs to get to the next level. You also get to learn other approaches that can help expand your business.
Serve as a Neutral Third Party
A neutral party to facilitate transactions might be what your company needs. A certified broker-dealer will offer this type of service. Your investors know that a broker-dealer has conducted the necessary research before a general solicitation, so it is easy to trust them. You, therefore, stand a better chance of closing a deal with your investors when you use a certified broker dealer.
In case of an error, the broker dealer’s insurance company will cover you, so you will not incur unnecessary costs. You will also share the costs resulting from compensating clients. As such, you are shielded from heavy financial losses that might affect the growth of your business.
Saves you Time and Money
A reliable broker-dealer will have access to all the things you need. You will not have to spend a lot of money on management tools, technology platforms, and marketing. As a result, you will save time and money that could be used in other projects. You will also be able to focus on your client’s needs.
Helps Raise Capital
Through the help of a broker-dealer, smaller companies have access to many investors. Through general solicitation, you will be able to raise more capital than you could do without a broker-dealer. Additionally, you will be able to access markets that were not easy to reach.
A reliable broker-dealer will take your company to the next level. Whether it is raising capital, finding investment solutions or saving time and money, they have you covered. If you are looking for reputable broker dealers in Atlanta, contact us today.