subject: Business Investment [print this page] A fundamental question that you need to ask yourself before acting upon a business idea is where am I going to get funding for business purposes?
No one will invest in a business unless they are sure for a return on their investment whether it be a bank concerned out the interest or a private investor concerned with his business investment.
Important inclusions to be made in your business plan are information about your background and experience. Investors are not looking solely to invest in an idea but the person behind the idea. The reputation of the business director is also important like his performance in previous businesses, especially those who have successfully paid off loans.
The business plan needs to include meticulous detail about how the invested money will be used. Existing business would need to prove their profit and losses over the length of the business. For new businesses you would need to show market research, projected costs and projected turnover. The normal projection would be estimating three years ahead.
Once the business plan is complete and you know how much you need as an investment and you are assured of the rate at which you can pay the investment back then you are ready to go out and look for an investor.
There are many lending possibilities out there, so don't restrict your mind into thinking that your only chance to fund your business is a bank, private lenders and also social lending is now a thriving market.
One of many ways in which to obtain funding for your business is a new way of business lending through a service provider called Funding Circle. This UK based financial service provides the platform for business to lend to businesses where high interest rates are possible depending on the risk involved.
A typical rate of return for investors is 6-9% with a cash back completion. Most importantly Funding Circle gives an option for those refused funding by banking corporations.
by: Frederick Von Waltzembourg.
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