The world of business is a very broad industry with
individuals all around the globe who has intentions of become successful. Great ideas can only become a successful
business with the appropriate funding and guidance from an expert. The majority of business entrepreneurs are in
debt with the government due to past endeavors that life has presented to them.
There are three alternatives from funding sources that can take your business
to the next level if you have a good idea or passion for something in particular.
The first alternative for funding would be royalty lending.
In royalty lending process the money is returned when your business starts to
create revenue. Instead a fixed payment plan you will pay back to the investor
the loan is paid back when the company becomes successful. This idea is great
for companies that will be during a certain season that has unexpected revenue
gains. It allows the owner of the company to have 100%. On the flip side of
royalty lending would be instant debt that can last a long period of time, the
outcome can be a pro or con to your company.
The second alternative for funding would be crowd funding.
In this matter there would be multiple investors you would present your
business plan to who are not certified investors. Crowd funding is similar to
your friends or family giving you financial backing for your company. The flip
side to crowd funding is the amount of money you can raise may be limited.
The third alternative for funding would be sock loans, which
is based on the quality of the sock. Your business may be in devastating
condition but if stocks are profitable the loan will be approved. You will be
giving up stock in your company so when revenue picks up within the company it
will be directly transferred in the lenders bank account, But if you lose stock,
which was invested in by the lenders then you may be carried with tax
ramifications.
Reference
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