There are a number of benefits for your business to have multiple financing options or funding sources at your disposal.
Financing Your Way is able to craft a specific business loan that enables entrepreneurs to secure an adequate amount of working capital to start out with. Many new businesses that are unable to find professional financing or take advantage of working capital loans for startups end up utilizing the personal funds of the founder whether it be personal savings or loans from family members and friends. Often times, this form of financing can be preferred to standard bank loans because the terms of repayment tend to be much more flexible in addition to the lack of interest that accumulates on traditional small business loans.
Another option for finance procurement for our companies is shared capital or seeking outside investors. Ideally, we what we truly want is to have an advisor that can help us to strike the perfect balance between family investors, small neutral investors and larger more entrenched investors.
Many large investors will not want to be involved with the day to day operations of the company at all while smaller investors may seek to have a more hand on experience. Small investors are less likely to take risks with their money. This means that if having a large amount of freedom to change the business plan is important, a different direction or funding source may need to be sought out. Alternatively, while friends and family may afford our entrepreneurial minds the freedom and creativity that they desire to branch out, there is a distinct possibility that dealing with close family and money may cause tension between family members.
Whether we choose a financing company like Financing Your Way, seek out personal loans, or even solicit the help of large investors or “business angels”, it is important to be well informed and make an educated decision. Attaining an adequate amount of backing for our businesses is a major undertaking and not one that can be handled lightly at all. Acquiring the financing that we need in a manner that best suits our needs is a meticulous and time-consuming project; an intense labor of love.