Encyclopaedia - Finance

Small business startup loan, let’s keep this simple. If you are trying to get a larger loan (one over $100,000), then you will probably need collateral. Yo

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

u probably already knew that. But what you may not know is that for some smaller loans, you may be able to get by with several other alternatives—home equit

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

y and unsecured loans. You may even be able to negotiate your accounts receivable as a form of collateral if none of the other options work. The government

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

provides several programs to help you as well.

USE THE MONEY IN YOUR BACKYARD If you have no collateral and your lenders require it, you may be able to co

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

nvince them to use your home equity as collateral. This should be exciting news for all of you homeowners that are starting businesses with less than sterli

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ng personal credit. However, this tactic will not work if you have already borrowed significantly against your home equity.

TAKE THE THIEF APPROACH (LIKE B

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ANKS DO) You may not understand why you need collateral for smaller small business startup loan amounts when you are already paying interest for borrowing

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

the money. This is a perfectly good question. And the answer is simple: for small amounts, they don’t. So either find a lender that provides unsecured sma

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ll business startup loans or convince traditional lenders to give you money without requiring collateral. If you are looking for $15,000 or less and your pr

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

eferred lender will not do the deal without collateral, make like a thief and run (to the next lender.) Just don’t do anything illegal on your way out.

TAK

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

E THE MONEY FROM YOUR CUSTOMER’S POCKETS Instead of trying to use assets you don’t have, try using the cash that customers already owe you. Some banks let

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

businesses use accounts receivable as a form of collateral instead of real estate or other assets, so if your bank’s primary objection is your lack of colla

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

teral, negotiate to see if they will accept accounts receivable. This may reduce the amount a lender feels comfortable providing, but any number is better t

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

han zero when you are desperate.

CALL YOUR UNCLE SAM If all else fails, ask lenders if they can distribute SBA funding. The 7(a) Guaranty program can hel

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

p allay their doubts for larger small business startup loans, and the Microloan program can help for start up loans. You must qualify for these programs, so

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

do some research about the SBA loans to make sure you are eligible. Be aware that even if you qualify and are approved for an SBA loan, banks can still cho

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ose not to loan money to you.

Some states have grant programs to foster business growth. Consult your local chamber of commerce for information about those

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

or use the internet for additional information.

DON’T GIVE UP If you are completely out of options, keep a positive attitude. Learn from your mistakes an

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

d do everything in your power to correct them as soon as possible. If you do this, the small business startup loan check will appear in your bank someday. I

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

n the meantime, maybe one of your family or friends will decide your business is great and provide some funding. You never where a pot of gold may be hidden

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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