A List of Your Top Options for Funding for Your Start-Up Enterprise
If you have a great idea for a business, then we have to congratulate you – it takes some guts to think outside the box, look at something in a different way, and be willing to spend both money and time to make that idea grow into a new income-generating mechanism that can possibly change the lives of yourself and your loved ones (not to mention your community).
However, start-ups quickly start to understand that not everything goes according to plan, and there is often a significant need for funding in order to streamline everything, especially in the first stages. Are you willing to put in the money yourself, or are you thinking of other kinds of funding? It’s a serious consideration to make. Are you looking for starting capital? Here is a list of your top options for funding your start-up enterprise.
Image attributed to Stuart Miles/FreeDigitalPhotos.net
What are your options?
There are several options available to you – check them all carefully before making the final decision:
• Medium term – you need to buy new equipment and are able to get a medium term loan or a hire purpose, which could suit your purpose.
• Invoice purchasing – you can ask agencies to cash out your existing invoices at a discount to get immediate cash flow.
• Project financing – a medium term investment may be willing to invest if your profit projections look very well.
• Crowdfunding – it is becoming more and more popular and can be accomplished through agencies, especially online.
• Peer to peer – In essence, you borrow money from others. Check their conditions carefully first.
Your track record
The lender will look for a track record – and this is usually preferred. However, if you’re just a start-up, you should be able to present a projection of sales and expenses in the future (and be able to back this up by research).
Your records and your preferences
Expect your personal records to be examined, so it’s important to have a good credit rating.
The question of what kind of financing is best for you is a personal one – after all, you are the one who will be running the business, and it’s up to you to decide how much control you want to keep, or how much control you are willing to let go of in exchange of professional advice. Nobody should be able to lecture you regarding that – it’s truly a personal choice.
However, it’s always best to seek professional advice before making that final decision, and it’s a great idea to seek the services of a professional accountant first (such as the central London accountants from such trusted firms as GSM & Co.) before plunging into the unknown. Your business is too important for mistakes, after all – your start-up can change many people’s futures, including yours.