There are several ways
that you should consider when seeking financing for your business projects,
today we present at least 5 you need to know and analyzed to choose the one
that suits you.
1. Personal
savings: probably the healthiest source of capital that already exists that is
based on the savings that you have done for some time. The risk is minimal
because capital is 100% of your property. Also, no interest or payment
obligations to third parties of any kind.
2. Known
Financing (friends or family): This is a highly recommended source of capital
because it is based on the good reputation that your family and friends have of
you. If you have proven to be a responsible, dutiful and determined to achieve
goals, you probably have all the credibility needed for an uncle or friend
capitalist is willing to offer financial support. Of course, in this second
form if you should consider the remuneration of any gain financial support
provided. The recommended time is one or two years to repay the loan.
3. Bank
Loan: A highly recommended option since banks will be willing to provide
financing for your projects provided they are serious and are properly drafted
and presented. The advantage is that the interest charge may be minimal and
terms ranging from 1-5 years. Since then, the payment of the credit must be
considered within your accounting and still have a utility that allows you to
grow and develop. Another advantage of this is that if you keep a good record
with your bank, you require further credits will be approved faster and with
preferential interest cups.
4. Credit
Cards: Use your credit card as a source of your finance gain and is an option
at all recommended. First, because the stakes are too high and this increases
the risk and reduces profit margins. Use a card can be an alternative to an
emergency in case you need a dedicated team to work that requires and
represents an investment of early return. But to pretend that the card is for
the acquisition of supplies or services expenses is a challenge of many
entrepreneurs. Personally I recommend avoiding this form unless a real
emergency.
5. SME
Support Organizations: These are organizations specializing in promoting the
development of small and medium enterprises. Training programs regularly work
together with the government and provide sources of funding to entrepreneurs who
demonstrate serious interest projects and long term. Similar to bank credit
application, you need to develop a document outlining the feasibility of your
business project. Another great advantage is that the interest, if any, are
very small. The disadvantage is that capital can flow slowly because eventually
procedures can be very bureaucratic.
In short, what you want
to be the sources of funding you seek, it is important to keep in mind as an
entrepreneur the following points to be taken seriously by your source of
capital:
• The approval of a
loan depends primarily on how expose your business project. Do it in a serious
and professional will help you get a positive response.
• Must include complete
information on the legality of the business and the guarantees you offer to respond
the borrowed capital.
• You must have a bank
record good and this includes an excellent record in the use of your credit
cards.
• You must have an
excellent work history.
• You must have
experience and knowledge in the field where you will develop your project. This
may be applicable to your partners.
• You must clearly
display the amount you need and describe how it will be used and invested in
the business.
With these tips in hand
I think you'll be properly prepared to go and seek financial support you need
to expand your business to new heights.
Hope you find this
article useful.
1 comments:
good and useful article......
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