Forms of business financing – Business Loans

When it seems that you have achieved the most difficult thing: creating the foundations of a business and shaping your idea, the problem arises from where to seek financing for your business and what are the options available.

It is important to know the alternatives you have to finance a business and choose at any time the one that suits you.

Business financing through self-financing

Business financing through self-financing

This is the first method to go to obtain business financing. Scratching the pocket and getting our company self-financing is essential for the development and implementation of it. This method of financing usually works when the need for financing is not too great as we avoid decapitalizing.

Self-financing is usually combined with other methods of business financing, and also gives security and confidence that another or other people (or entities) lend their money to complement this type of business financing, or why not? to do it in the future since the first one who trusts your business is yourself.

Financing for businesses in acquaintances or relatives

Financing for businesses in acquaintances or relatives

Another method of business financing would be to go to people close to your environment who have available capital and are willing to lend you their money. There will be cases in which the return is with interest and others in which it is free, that is, at no cost.

Finance a business through crowdlending

Finance a business through crowdlending

Crowdlending platforms such as Good Finance, offer financing for businesses in exchange for an interest rate that will depend on the outcome of the study done on them. So far it might look like a bank, but nothing is further from reality. They are loans funded by private capital, that is, by people who are willing to lend you their money, and who in return receive an interest rate previously set for it. In this way, the SME gets a loan with special characteristics:

  • Without hiring additional products, only financing
  • Without consuming CIRBE
  • The loan can be repaid when the company wishes without cost
  • It is much faster and faster.
  • No study commission

As you can see, there are many differences that put the weight of the balance on the crowdlending side.

Search business financing through Business Angels

Search business financing through Business Angels

The financing of a business through the Business Angels is mainly in the growth phase of the company. It consists of a type of people, call them patrons, who are dedicated to looking for businesses with potential, and help them to take off and exploit all the potential they have, through the financing of the company.

Normally this type of business financing is offers in exchange for a shareholding. There are also financing events where these business angels come to listen to proposals where to invest and select those that they find attractive.

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