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Page 39 analysis, and forecasting among other things; otherwise, how can the loan maker be sure of payback? So where can you go to get a loan for your business? Family And Friends - This is a good source of money, especially if you have a few wealthy people in your close circle who trust you and do not mind waiting to be paid back, or even never being paid back, in case your business idea fails.Angel Investors-Your business may be able to attract initial funding from private sources such as business people or various institutions in return for a stake in your business.
Corporate Funding - Sometimes a company might find it
worthwhile to invest in a business in return for receiving the goods and
services of the newly created business at favorable prices. Many times
such a business is created as an offshoot of an internal project within
the supporting corporation. Outsiders may find it difficult to attract
corporate funding since they may not be as knowledgeable about the
company's working and specific requirements. Another drawback for
these types of businesses is that they may end up entirely dependent on
their subsidizing companies, making their tailored products and
services less marketable to others. Bank Loans - Many financial institutions are also willing to lend money to those with viable business plans. The interest rates on these loans are generally higher that those of the government but there is less red tape and larger loan amounts maybe available. … |
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