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FUNDING THE BUSINESS

Do you know what to do?


Most entrepreneurs are idea rich and cash poor. Like the old adage says, it takes money to make money.
adage=general truth

SOURCES OF FUNDS
MICRO LOANS / MICRO CREDIT ANGEL INVESTOR FRIENDS AND FAMILY GOVERNMENT FUNDING VENTURE CAPITAL SYNDICATED LOAN CREDIT CARD LEASING

ANGEL INVESTOR
-an affluent individual who provides capital for a business start-up in exchange for convertible debt or ownership equity

convertible debt=bond(obligatiune) equity=assets(active)

MICRO LOANS/MICRO CREDIT


-it provides a financial service to those in poverty designed to spur entrepreneurship -it helps the micro-entrepreneurs to get trough difficult times to spur= a indemna

FRIENDS AND FAMILY


-it is one of the most great source of funding if you are a reliable and competent person -the most important is to put it on paper (legal papers) the loan even if you borrow from your dad ,girlfriend or father-in-law

GOVERNMENT FUNDING
-this type of fund has specific stipulations and restrictions that apply to securing the money

-the funds can be used for :materials-cost subsidies ,rent and mortgage subsidies, low interest loans
subsidies=subventii

VENTURE CAPITAL -VC


-is a type of private equity capital also known as risk capital -VC investments are made as cash in exchange for shares in the invested company -VC investors back up ICT (information and communication technology) companies

SYNDICATED LOAN
-is provided by a group of lenders and is structured ,arranged and administered by one or several commercial or investment banks known as arrangers -arrangers serve the investment-banking role of raising investors for an issuer

issuer=legal entity that develops ,registers and sells securities for the purpose of financing its operations securities= stocks ,bonds ,shares

CREDIT CARD
-in America according to the new federal rules -Credit Card Act 2009- credit card is the most popular source of outside financing to get the business off the ground -the new regulations reefer to: interest-rate increases , credit companies will be mailing bills earlier for helping the consumers

LEASING
-is the way to go if you need items such as equipment, vehicles, or even computers. -your supplier will help you explore this.

There are many channels available to you to raise capital. Put together a solid business plan, talk to a financial adviser, and just start asking. Someone will eventually say "Yes".

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