What's it worth?

Entrepreneur, May, 1998 by David R. Evanson, Art Beroff

Finally, loan guarantees should be contemplated only by entrepreneurs whose companies can generate predictable sales and earnings. "The nightmare for the company occurs when it makes the revenue projection but doesn't hit the earnings projection," says Lipper. "Then it's left with very high financing costs and little or no profit."

David R. Evanson, a writer and consultant, is a principal of Financial Communications Associates in Ardmore, Pennsylvania. Art Beroff, a principal of Beroff Associates in Howard Beach, New York, helps companies raise capital and go public.