Money matters, raising finance
Any business that starts needs some sort of finance to get going, this could be as small as £5 to as much as £1 million, here are some of the most popular ways people raise finance;
Personal capital - Literally putting money from your own savings, or pay into the business.
Bank of mum and dad - Borrowing money from parents, beware though that if you can't pay them back this could cause a problem in your relationship.
Friends and family - Borrowing money from fiends and family, beware though that if you can't pay them back this could cause a problem in your relationship.
Fire sale - Selling things you don't need to raise finance.
Mortgage capital - Any property that you own can be mortgaged to raise money for your business.
Loan - A loan from a regulated lender for a specific period of time at a given rate of interest.
Credit cards - Especially credit cards that have 0% interest, they allow you to get started and hopefully by the time you have to pay them back you will be in profit. Beware of cash charges, and high interest rates after the introductory period.
Partnership - If you have created a limited liability partnership the finance will come from the limited liability partners.
Public offering - If you have created a public limited company you can sell shares in your company to raise money.
Investors - A private investor or company who likes your idea may invest money in your business for a fixed return.
Equity investor - A private investor who will purchase a part of your business in return for financial investment.
Grants - Local councils, and the government often provide small grants to new businesses to help them get going.
However, you raise money don't forget to get a bank account to put the money in.
