Obtaining Finance


You've got a great business idea, heaps of enthusiasm and experience, or perhaps you want to purchase an existing small business to fulfil a dream of being your own boss.
In either case, you've done a feasibility study and your research and financial forecasts indicate that your idea is viable. There's only one problem, you don't have enough money to start.

Sources of finance
All businesses require some form of financing. The best way to access funds is to have some form of collateral. Equity in property is considered one of the best resources. However, if that's not possible there are several options you may consider to finance your business.

  • Personal savings

    Equity funding is personal money invested into a business. Many people use their savings, an inheritance, or sell an asset to fund their business start-up.

    Starting a business can place a strain on your personal finances. It may be several months or more before your new business is profitable and can provide an income for you and your family. You must have the resources to maintain your household expenses while you establish your business, otherwise the financial success of your business will be at risk.

    Well before starting a business it is advisable to get your personal finances in order. Develop a household budget that accounts for your income and your personal expenses. Once your personal finances are in order, you can assess the excess funds you have available to invest in your business.


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