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Offline Isaac Adeniran

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Money Sources for Business
« on: December 17, 2012, 03:12:19 PM »
Money Sources for Business

Where can you find money for your business? What kind of financing should you look for?
The type of funding available to you will be influenced by the stage your business is at in its life cycle. If you are just starting out and have no track record and no established product or service, you usually have to bankroll the business using your own resources. These may include your savings, income from a full-time job, personal loans, a second mortgage on your home, money you can borrow from relatives, or even what you can borrow on credit cards.
If you have a proven concept, and/or contact with individuals with money to invest, angel capital may be an option.
Angel investors can be anyone from a personal acquaintance looking to invest a small amount of money to seasoned investors who look to invest in startups they think could develop into very large, profitable businesses.
If you are buying an existing business, you may be able to get the seller to finance all or part of the loan. And, if you're buying a franchise, the franchisor may offer help by leasing equipment to you or by helping you get a bank loan.
As your business grows you are likely to need more money than you can finance out of your own pocket. Depending on how much you need and the nature of your business, bank loans or inventory financing may be options.
Venture capitalists may be the source of capital.
There are no hard and fast rules in business, though, so there are exceptions to all of the above. Sometimes, for instance, bright ideas for new businesses, particularly in the technology sector, do get outside funding while they are in the idea stage. And, neither banks nor venture capitalists or other outside investors may be willing to put up the money to get you to the next stage in your business.

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Money Sources for Business
« on: December 17, 2012, 03:12:19 PM »


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