Just an Online Minute... Help for Ad Budgets
American Media Services and AMS Interactive Media announced today the launch of AMS Financial Services http://www.amsfinancialservices.com, responding to recent decreases in the availability of VC financing for dot-coms and start-ups.
The new division will facilitate loans for clients specifically for media buys, to complement the traditional and interactive media buying and planning services currently offered by the companies.
Jon Greenberg, president of AMS, said "There are excellent 'new economy' companies for which advertising is key, but which require bridge loans to help them get their message out. It once seemed like the well of dot-com investment fervor showed no signs of drying up, but in this market new start-ups can't automatically expect to secure funding for advertising."
"Advertising is key to generating corporate growth, which can lead to higher market valuation for young companies seeking their second round of funding," said Mark N. Dorf, CEO of AMSI. "We're offering a way to help start-ups achieve their advertising goals by alleviating some of the financial pressures." And, according to AMSI, companies can come to them with a financing proposal and know within 48 hours if the request has been accepted. AMS Financial Services has already granted a one-year loan and is currently negotiating another deal worth more than $500,000. This service seems to be the first of its kind.