How to Fund a New Business
Funding a new business can be done by the individual owner, through a conventional loan or through private investors. Find the best funding plan for a new business with advice from a certified public accountant in this free video on starting a new business.
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Hi, today's topic is How to Fund A New Business. There are multiple methods of doing so. After we review them, you need to determine which method is going to best suit your needs, a.k.a., which percentage rates, the interest rates and terms are going to best suit what you are, A. eligible for, and B. can afford. The first of which is self-funded. If you are independently wealthy, or well capitalized, you can just fund that yourself. That's kind of a no brainer. Secondly, there's bank funding, or conventional loans. You can take out personal, and or business loans for capital or operations. You can even fund a conventional loan with either inventory, or capital collateral. There's also private investors, joint ventures that would be interested when the banks are having a hard time giving out loan approvals. And finally, it is possible that the seller of an entity would be interested in financing it. Perhaps his heirs aren't interested in passing along the business, or he doesn't have another buyer that is going to meet his terms without him making some kind of concession like that. Those are different options.