Different Sources Of Financing For Your Startup
The entrepreneurs who are planning to source funds for their new business startup will be in a dilemma as to which would be the ideal source of funding. It would be quite an overwhelming process to choose the best source of financing. You need to weigh the benefits and the disadvantages of each source, so that it will help you to pick the one that matches with your requirement. Till you finalize the source of financing you can fund the business to meet the daily expenses by raising money in the cryptocurrency market. Go through the site to learn more about how the cryptocurrency market will help in raising the fund. Below mentioned are few of the funding sources available for raising the fund.
Personal savings- The most appealing means of financing is using your personal savings as you are making use of your own funds to begin the business process and you don’t owe anyone any money.
- Mental satisfaction that you are making use of your own fund
- Total control of the business as you have the full authority to do whatever you wish with the money
- If a business does not do well, the hard work you put in will go for total waste and lose all the money
- You will miss out the valuable mentorship and guidance from the venture capitalists and investors
Venture capital- They are investors who put in money in your business for the exchange of equity. They invest in businesses that had got the good potential of offering good returns for their investment.
- They offer expert advice and offer mentorship which helps in developing the business
- It gives immediate creditability to your business and opens doors to a huge network of individuals like partners and future investors
As they offer a huge amount of funds, you will be forced to forego the large part of business control
Bank loans- They are a great source of financing. You need to be well-educated with the different options available before you apply for a loan and also should know about the rate of interest that is associated with each loan.
- There are various financing options available and you choose the one that suits your needs
- A process of funding is quick
- You will have the full control of your business
- Lots of documentation is required
- Money has to be returned in full with interest even if the business fails