Finance is a critical factor in the success of a business. Many decisions must be made and various obligations must be respected. This aspect of entrepreneurship has its share of specificities and several related activities are subject to strict regulations. But what if we do not have a good financial situation and we need to borrow money?
Research shows that Internet lending platforms can be of interest to potential borrowers, but will vary depending on the quality of their credit history. Indeed, it is possible to obtain loans on the platforms at rates as low as 7 or 8% while the interest rates of credit cards offered by financial institutions are around 20% and that these rates reach 30% when it comes to department store credit cards. The interest rates associated with loans on the parallel consumer credit market are still much higher and sometimes far exceed the 60% attrition rate in Canada.
To see the light of day, a business project must be adequately funded. Money can come from a variety of sources and come in different forms, for example in the form of grants or loans. It is vital for the realization of your business project that it is fed by sufficient funds. Based on our experience, UK income tax bands are what you need.
Funding sources
The financial requirements of a start-up business are usually presented in the financial plan established during the execution of the business plan. The latter will be your main asset in your search for funding from the government, economic development and entrepreneurship support organizations as well as financial institutions.
Often, several sources of funding have to be found to raise the money needed to start a business. This may include a personal investment (which is often required to obtain government financial assistance or a bank loan), financial support from relatives, or financial assistance from the government, an economic development agency, and entrepreneurship support entrepreneurship support or a private organization.
Financial support provided by the government or an organization supporting entrepreneurship
Several types of financing are offered by the Québec government and by various business support organizations. The eligibility conditions and target groups differ from one program to another. The Ressources + search tool allows you to find funding programs offered by the Québec government and non-governmental organizations.
Private financing
If you have a clear idea of the down payment you can provide and the amount of government funding you will receive, you can turn to private organizations and financial institutions to get the money to complete the funding.
You might decide, for example, to approach financial angels or venture capital companies. In both cases, in return for the risks they incur, investors will usually get involved in your business, for example by taking a stake in your company or by participating in the management of it.
If you apply for a loan from a financial institution, it may require, in addition to a minimum down payment, personal guarantees such as a house, car or furniture. It may also ask for a third-party bond or require you to obtain a loan guarantee through a government business support program.
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