How To Obtain Finance

HOW TO OBTAIN FINANCE -- For Start Up Bussiness obtain finance needed to starting or expanding business. Often the hardest part of starting a business is raising the money to get going. Obtaining finance for a home purchase can be a complicated process, and there are certain criteria that lenders require borrowers to meet before they will agree to lend money. Getting small business loans approved may not be as easy as most company owners expect. While banks are a great source of capital financing, however, there are other methods you can consider when you want to obtain the money for supporting the cost of keeping your business running in future years.

Types of finance

There are two of the main types of finance include:
  - Debt    finance – money borrowed from external lenders, such as a bank
   - Equity finance – investing your own money, or funds from other stakeholders, in  exchange for partial ownership.
It is possible to have both types of finance in your business.

Obtain Finance

For Start Up Business, can obtain finance from :

1. Obtaining finance from outside investors
2. Using an entrepreneur’s personal sources of finance
3. Leasing
4. Bank overdraft
5. Bank loan

But, before you’re starting or expanding your business you may need to obtain finance. Carefully consider the type of finance as it could affect your tax obligations and cash flow.
Before sourcing finance:
1.  determine how much finance you will need
 2. develop a sound business plan
 3. consider the timeframe you will need to repay the loan
 4. determine your ability to repay the loan