With your business plan in hand, and your business set up legally, you can start looking for financing. All businesses usually need help with financing at some point in time. The process begins by estimating financial needs based on projected financial statements. These statements, along with a sound business plan, enable a business to analyze where to seek financing -- from within the business itself or from an outside lender. Azarbehi consulting can help demystify financing, and banking. We can help you figure out what the bankers are looking for when you apply, and make sure you have the best chance to get the financing you need.
The most common sources include:
- Financial Institutions - loans from your current bank or other institution. You don't have to restrict yourself to only one source - in fact, it can be to your advantage to diversify.
- Personal investment - cash or assets that you invest yourself (normally a condition to obtaining a loan).
- "Love money"- loans from family or friends, to be paid back when your business is profitable.
- Investors - most investors look for knowledge-based businesses with high growth and profit potential; investors include venture capitalists and angels.
- Government grants/subsidies - look into these, although be aware that most have very specific eligibility requirements.
- It pays to compare what different banks offer, but be sure to look at the whole package (collateral required, conditions, repayment schedules), not just the interest rate.