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FUNDING THE BUSINESS
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Do you know what to do?
Most entrepreneurs
are idea rich and
cash poor.
Like the old adagesays, it takesmoney to make
money.
adage=general truth
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SOURCES OF FUNDS
MICRO LOANS / MICRO CREDIT
ANGEL INVESTOR
FRIENDS AND FAMILY GOVERNMENT FUNDING
VENTURE CAPITAL
SYNDICATED LOAN CREDIT CARD
LEASING
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ANGEL INVESTOR
-an affluent individual who provides capitalfor a business
start-up in exchange forconvertible debt or ownership equity
convertible debt=bond(obligatiune)
equity=assets(active)
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MICRO LOANS/MICROCREDIT
-it provides a financial service to those inpoverty designed to
spur entrepreneurship
-it helps the micro-entrepreneurs to gettrough difficult
times
to spur= a indemna
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FRIENDS AND FAMILY
-it is one of the most great source of fundingif you are a
reliable and competent person
-the most important is to put it on paper(legal papers) the loan
even if you borrowfrom your dad ,girlfriend or father-in-law
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GOVERNMENT FUNDING
-this type of fund has specific stipulationsand restrictions
that apply to securing themoney
-the funds can be used for :materials-costsubsidies ,rent and
mortgage subsidies,
low
interest loans
subsidies=subventii
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VENTURE CAPITAL -VC
-is a type of private equity capital alsoknown as risk
capital
-VC investments are made as cash inexchange for shares in the
investedcompany
-VC investors back up ICT (information andcommunication
technology) companies
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SYNDICATED LOAN
-is provided by a group of lenders and isstructured ,arranged
and administered byone or several commercial or investment
banks known as arrangers
-arrangers serve the investment-banking
role of raising investors for an issuer
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issuer=legal entity that develops ,registersand
sellssecuritiesfor the purpose offinancing its operations
securities= stocks ,bonds ,shares
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CREDIT CARD
-in America according to the new federalrules -Credit Card Act
2009- credit card isthe most popular source of outside
financing to get the business off theground
-the new regulations reefer to: interest-rateincreases , credit
companies will bemailing bills earlier for helping theconsumers
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LEASING
-is the way to go if you need items such asequipment, vehicles,
or even computers.
-your supplier will help you explore this.
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There are manychannels available toyou to raise capital.
Put together a solidbusiness plan, talk toa financial
adviser,
and just start asking.Someone willeventually say "Yes".
