There are many different options available for financing a business. The ones that are best suited to you will depend on a number of things and you will need to spend a lot of time weighing up to pros and cons of each. Here are some of the things to consider:
- Are you willing to sell any shares in your business? If so, investment finance could work well for you. Whilst you would own less of the business yourself, you would also not have to worry about repaying debts. You could benefit from the skills of your investors if you choose people carefully.
- Do you need to borrow lots of money? If this is the case, you might not be able to afford a loan, or you may not be eligible for one in the first place. An investor might be the best option here.
- Are you a strong communicator? Perhaps you should try crowdfunding. You will usually make use of a website to showcase your business plan and collect money from people choosing to donate. Sometimes you will be expected to offer stakes in your business, so read all of the terms and conditions first.
- Is your business brand new or is is being re-branded? If you’ve got an existing business that is doing well, you might be in a more secure position to get a loan.
- Do you own premises? This can make it easier to get a loan.