Financing your growing business
You’ve got a great plan for a new business and have a proposal in mind but just how can you finance your growing business is a question in many minds of a new entrepreneur.
Well let’s first look at the obvious options, your bank could provide a small start up loan and may will once you have a business proposal provide you with a loan that will help your business grow form initial concept to a fully fledged business and get on you on our way. You do need to consider the interest that could be applied and how long you have to make a repayment but for man is a great start to turning their ideas in a live business. Business grants are another option, although these are relatively difficult to come by and only offer small grants you can apply to companies such as The Princes Trust. Whilst for many Invoice Factoring is another reliable method for obtaining money. This asset based lending solution is a way of freeing up any money that you have in the assets of your business but you do need to read the small print should you find that you are struggling to repay what you borrow as it can mean losing your assets. Private venturing firms can also be a way of getting hold of cash quickly to help boost your growing business, you will need to make a proposal that will give the company a incentive to want to buy in to your business and provide the money you need and again it is worth reading the small print so that you 100% sure of what you are agreeing to.
For those who don’t like the idea of borrowing from a bank or who have been turned down, crowd finding is a new option that will generate the means to funding your business. Members of the general public can donate money which will mean they invest a small proportion of money into an account which you can then access. You will need to repay this money either as a rewards system or by giving them equity in your business but is a great option for those who can’t access the financial help that they need elsewhere.
Alternatively Business start up loans are available for a lot of small business and a sound source of finance especially if you want to feel at ease and comfortable with who you are loaning from. Many feel that this offers a safe method for getting that initial help which can seem unobtainable elsewhere. You will as with all of the options we have looked at need to do some research to make sure you are happy with what you are getting.
Whatever method you choose, always read, read again and double check what you are agreeing to, don’t lend off anyone who you are unsure of and always make sure that if anything was to go wrong that you can meet the repayment for what you are agreeing to.