Determine the cost of capital you borrow.
Whether you self-fund your operations, have a bank line of credit, use
co-counsel to joint venture, or have some alternative form of financing,
there is a cost of the capital you use. That cost of capital is determined
by a multitude of factors, such as any lock-up period; the interest rate
and whether the interest compounds daily, monthly, or annually; whether
there is an interest reserve; and other fees charged by a lender.
Before committing to borrowing funds, you should conduct a cost of money
analysis. To this end, Virage regularly speaks with a firm’s accountant,
CPA, CFO, or others to ensure that you get what you expect. With Virage,
you will get funds priced fairly and on good terms.