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Alternative Ways Of Financing Your Business. Part Two


Cash for business is just like the arteries and blood vessels of the body!

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Entrepreneur`s time is strictly limited and priceless. He’s too busy running a business and cannot spend his time on constant search of funds.

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There are many sources of attraction of external financing. Which one is right for your business? What are the advantages and disadvantages? All this is in our post!

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You might be also interested to know about other business financing sources.

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Find job on JJi – or develop your business using largest free ads portal – your potential customers will definitely hear you tomorrow!

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What effective ways of getting funds for starting & developing business are out there?

Go to the next page & find it out!

Leasing

If you don`t have enough money to buy things, you can rent them!



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Home appliancess, vehicles, computers, equipment, apartments, art objects, intangible assets – all these can be obtained on lease from companies specializing in this type of services. Today each bank has its leasing company.

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The attractiveness of this source of funding is determined by following factors:

  • contract settled with leasing does not aggravate balance with debt that increases the credit rating of the company;
  • lease payments relate to current costs that, in some cases, reduces the tax burden of enterprises;
  • leasing has smaller term of consideration of applications than credit;
  • more flexible conditions of payment schedule calculation for leasing than for a credit;
  • terms of financing for leasing are bigger than credit terms;
  • choosing leasing, you can use accelerated depreciation.

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Bootstrap Funding

Limited financial resources explain increasing popularity of Bootstrap Funding.

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Partial load of business and the lack of wages is reached at the expense of operating a business in parallel with the main place of work (work at home in the evenings or at the weekends) or with reduced costs (one product line) with subsequent expansion due to income.

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Factoring

Range of financial services, rendered by the bank or a specialized company (factor) to the customer in exchange for cession of claims on debt.

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Factor funds you at the time of delivery of goods and services to the customers, and all of the requirements to pay for products or services customers must comply with in relation to factor. Funding supports a large part of the sum of delivery.

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Early payment size can vary from 50% to 90% from the sum of delivery. Balance (sum of deliveries without the amount of funding and the factor`s commission) is paid to the client on the date of receipt of the money from the debtor.

The main advantage of factoring is that you don’t need to pledge your assets as collateral.

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There are many other advantages:

For a vendor:

  • a simple process to obtain funding;
  • minimum package of documents;
  • does not require collateral and guarantee;
  • improved financial indicators;
  • competitive rates and terms of financing;
  • the ability to offer customers more flexible terms of payment.

For a customer:

  • attracting new customers;
  • extra motivation and support of the work of key suppliers without additional risks and costs to the customer.

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Are there any other great ideas for financing your business? Go to the next page & find it out! 

Credit cards

Credit cards promote financial development of business in two ways:



  • ensure access to financing;
  • formation of credit history.

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Credit card companies offer many loyalty programs:

  • low introductory interest rates;
  • tying interest rates to profits;
  • drawings, etc.

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Corporate innovative projects

The major innovation companies carry out special programs, they assign resources for these programs and even allocate funding to commercialize a technology or a business idea.

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They attract highly qualified staff to participate in these programs. Participating in the development of a project, you can claim for a management job in the new company!

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