Craftsman, business manager, project manager, entrepreneurs, are you looking for financing for your project?
Goodwill, walls, cash, redemption of shares, works …
To develop, a business often needs to call on external financing. Banks or crowdfunding, can give you this funding.
Not all entrepreneurs have a personal contribution to invest in their professional project. However, embarking on a business creation project inevitably involves expenses. To cope with this, the entrepreneur often has to go through a period of seeking funding.
How to finance your professional project? « Gold Finance Limited » presents the different types of financing and the aid that exists to finance a professional project.
How to finance a professional project?
The funding of a professional project should not be based on a single source of funding. Indeed, for a project to be coherent, it is important to successfully combine several types of resources.
To finance a professional project, the entrepreneur must first rely on his own funds, then when this is not enough, he can turn to external sources of finance.
1- The entrepreneur’s equity.
The first source of funding for a professional project is always based on the entrepreneur’s personal contributions, that is to say on the personal savings he wishes to invest in his business. Obviously, the more business associates involved in the project, the greater the initial contribution.
Sometimes the entourage of the entrepreneur wants to give the project a little boost in the form of a donation or a loan. The sums thus collected, designated under the term of “love money” allow to strengthen the contribution of the entrepreneur.
2- The search for external funding.
When his equity is not enough to cover the expenses necessary to launch his project, the entrepreneur can turn to:
- A banking establishment: bank borrowing (or professional loan) is one of the most sought-after financing methods when it comes to launching a professional project. Thanks to this, the entrepreneur can quickly have the amount of money necessary for the construction of his project. It is however important to remember that the use of bank loans is never free: at each repayment deadline, the entrepreneur is required to pay interest on the loan.
- A set of contributors: crowdfunding, often referred to as crowdfunding, is a funding method that allows the entrepreneur to finance part of his professional project by individuals or companies who are interested in his project. Crowdfunding can take the form of a donation, with or without consideration, or a free or paid loan.
Good to know: during the life of your business, think about the factoring contract. This type of short-term financing allows you to get a quick payment of your invoices in order to avoid cash shifts.
Those scale projects