The funding options for the company, particularly businesses which are in the early stages are limited at best. This issue has been compounded by the legacy of the credit crunch and the continued lack of liquidity in the wholesale funding markets.
There are several funding methods that have developed and increased in popularity as investors and individuals recognize the potential returns which can be derived from lending to businesses. You can also get more information about fundraising objectives online.
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Depending on the structures which are adopted there is potentially a return for a range of investor returns.
In addition, there is a range of additional and disruptive funding methods, such as crowdfunding and single invoice financing which have been developed as part of this shift, and recognition of opportunity.
However, as with any country after and in the midst of a recession, there are a huge number of new businesses that have been set up during this time, which have funding requirements like any other business, probably more so than any other business.
So, we have set the scene. What are the options? As a business owner, you will need to consider that you have a number of decisions that you will need to make. First, you need to decide if you are prepared to give away some equity from your business.
If your business is a start-up then you will need to consider that you are probably going to have to provide a personal guarantee for any lending which you are considering. Unfortunately, due to the high failure rate of start up's will be necessary, for loans and overdrafts.