Sources of Financing

SOURCES OF FINANCING
If you have a plan to go for a start-up venture, then right after planning, the first thing
that you need to take care of is the budget. If there is a dearth of business finance, then
the start-up plans fail to mature in the best possible manner. There are many agencies,
institutions, banks, and financial organizations that can offer you start-up loans at a
certain rate after you discuss your precise needs with them. Various kinds of start-up
loans are available in the market, and some of these include personal investment,
friends, family, venture capital, Finance For Entrepreneurs, love money, government
grants and subsidies. Depending on your exact monetary requirement, you can make
your planning.
You should know how much money you actually require, and plan how you are going
to spend the amount. You should keep in mind what kind of security you can offer
and how much time you want the loan. The loan duration and your paying capacity
are two essential factors that you need to consider before you go for a start-up loan.
What Are Some of the Finance For Entrepreneurs Options That You Can Look
For?
You can go through the following list of finance for entrepreneurs that is available in
the market, make careful planning, chalk out the probabilities in terms of
understanding and implementing the business concept, and then avail the finance:
1. Personal Investment: As a start-up loan, you can start with your tangible
form of assets that you already have in cash, as a commercial or residential
property, or as some gold bonds, solid gold, ornaments, etc. Shares and debentures
can also help. Basically, as part of personal investment, you are not taking any
amount from outside, and you are investing your own money for the start-up to run
smoothly.
2. Love money: For a Business loan, love money primarily indicates an amount
that has been raised very directly with the help of friends and family members. It is
a kind of seed capital, to simplify, that can accelerate your start-up. The nature of
risk is very dubious in this direction, and when you get love money, then you do
not go for traditional venture capital or take loans from banks.
3. Venture Capital: It is yet another type of start-up loan that you can apply for
any kind of funding related to technology-based start-up solutions. Usually, this
case of funding can be given to all those businesses that promise better future
potential, steady rise, and growth, for instance, in the field of information
technology or medicine, or biotechnology. When you consult a venture capitalist,
he or she agrees to invest in the start-up business only in exchange for what you
call equity. As a result, the ownership gets shared between you and an external
party. It offers a high return on investment and tries to consult a venture capitalist
who has a fair enough idea and expertise about your area of business.
4. Angel Investors: Sometimes retired company professionals and executives
decide to make an immediate and direct investment in many start-up ventures. You
can get advice from them because they have already been stalwarts in their own
industry. They can also help you with the right business network, expertise, and
management skills. If you ask for a return, they might want to speak about the
betterment and the flow of your business and also guide you on how to move on
with the entire start-up management. They do active monitoring from their end.
5. Government grants and subsidies: When it is about your start-up, it is about
your innovation and constant pursuit to get a high-quality return. When you
describe your project to some government agencies or organizations, they might
provide the right support to your start-up if they find it interesting. If you have
proper funding, you can do thorough research, check the marketing plans, decide
which equipment to buy, how to provide salaries to your employees, and how to
maximize the future potential and growth of your company. Generally, there is no
additional burden as such when you go for government grants and subsidies, but
you are not supposed to squander the amount and spend the funding only for the
start-up.

Sources of Financing

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