It costs money to start a business. Funding your business is one of the first — and most important — financial choices most business owners make. How you choose to fund your business could affect how you structure and run your business.
The financing channel looks at the different small business funding options available to start-up businesses and established SME businesses looking to grow. Get a wealth of advice and tips to help manage your accounts and cash flow better, views on the future of business banking and where to source alternative finance.
Range of Services
Otherwise known as bootstrapping, self-funding lets you leverage your own financial resources to support your business. Self-funding can come in the form of turning to family and friends for capital, using your savings accounts. With self-funding, you retain complete control over the business but you also take on all the risk yourself
If you want to retain complete control of your business, but don’t have enough funds to start, consider a small business loan.
To increase your chances of securing a loan, you should have a detailed project report with financial projections. We will help you in preparing the DPR and other documentation to contact banks and credit unions to request a loan.
Investors can give you funding to start your business in the form of venture capital investments. Venture capital is normally offered in exchange for an ownership share an active role in the company.
Venture capital differs from traditional financing in a number of important ways. Venture capital typically:
- Focuses high-growth companies
- Invests capital in return for equity, rather than debt (it’s not a loan)
- Takes higher risks in exchange for potential higher returns
- Has a longer investment horizon than traditional financing