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Old 09-07-2017, 03:07 AM
g_nicks g_nicks is offline
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Join Date: Jun 2017
Location: New York
Posts: 31
Default Re: ways of business financing

These are the best financing option available for small businesses :

Angel investors

Angel investors invest in early-stage or startup companies in exchange for a 20 to 25 percent return on their investment. They have helped to start up many prominent companies, including Google and Costco etc .

Venture capitalists

Venture capital is money that is given to help build new startups that are considered to have both high-growth and high-risk potential. .

A venture capital investment may be appropriate for small businesses that are beyond the startup phase and already generating revenues.However, venture capitalists have a short leash when it comes to company loyalty and often look to recover their investment within a three- to five-year time window.

Factoring/invoice advances

Through this process, a service provider will front you the money on invoices that have been billed out, which you then pay back once the customer has settled the bill. This way, the business can grow by providing the funds necessary to keep it going while waiting for customers to pay for outstanding invoices.

Crowdfunding

Crowdfunding on sites such as Kickstarter and Indiegogo can give a boost to financing a small business. These sites allow businesses to pool small investments from a number of investors instead of having to look for a single investment.

Raise Money Through Bank Loans:

Normally, banks is the first place that entrepreneurs go when thinking about funding.The bank provides two kinds of financing for businesses. One is working capital loan, and other is funding. Working Capital loan is the loan required to run one complete cycle of revenue generating operations, and the limit is usually decided by hypothecating stocks and debtors. Funding from bank would involve the usual process of sharing the business plan and the valuation details, along with the project report, based on which the loan is sanctioned.
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