Nothing is more beautiful than fulfilling your entrepreneurial dream, but often you need investments in addition to a Chamber of Commerce registration. How do you get the required starting capital to get your own business off the ground? Most start-ups need financial assistance when setting up their business. Nowadays you can opt for all kinds of alternative financing that are often arranged quicker than a starter loan from the bank. In addition, you often need sufficient equity and a business plan to take out a start-up financing with the bank.
As much as we would like to help starting entrepreneurs, at Forsyte family we are not (yet) able to provide financing to starters. We need sufficient financial data to calculate your credit score. As a starter you do not have this financial data, such as your annual statement, available yet. We can help you further if your company has been registered with the Chamber of Commerce for 15 months.
We are happy to think along with you: what are your options if you do not have a big money box and do want to make a kickstart with your company? In this article we list the various financing options for starting entrepreneurs, including the advantages and disadvantages. This way you can choose a starter loan that fits your company.
Do you already have a detailed business plan or can you use some help with the development of your business model? In both cases you can go to : an online lender that, in addition to existing entrepreneurs, also helps start-ups set up a business. Do you need a microcredit between 5,000 and 250,000 dollars to finance the start of your business? Then the right place for you. To make a financing application, you do need a business and a financial plan. In addition to financing, also has other products to help entrepreneurs with a successful start.
A business advisor assesses your business plan and your financial forecast. You can explain your plans in person and increase the chance of financing with a solid story and business model. If you only have a fantastic idea, the coaches can also help you to turn it into a solid plan.
Do you need financing as quickly as possible? Keep in mind that it takes a little more time before your financing application is approved. You receive an offer after you have had a meeting with the business advisor to discuss your business plan.
Crowdfunding: different types of campaigns
Another option to finance the start of your business is crowdfunding. Instead of borrowing from a bank or an individual institution, you arrange your starting capital with a large group of people, or the ‘crowd’. In the media you often read success stories from companies that have had a flying start with crowdfunding. Yet there are also rules attached to crowdfunding and you have to thoroughly study the conditions if you go for this option. In the country there are various platforms for crowdfunding. Which platform suits you best depends on your sector and the conditions that you find important. There are different forms of crowdfunding:
Investments or loans: Are you asking the crowd to make financial investments in your company? Then this means that you have to repay the money, just like with other loans, usually with interest.
Presale: By selling your products or services to the crowd before you actually deliver them, you have extra capital to invest.
Are you going to finance starting capital with crowdfunding? Then you not only conclude an agreement with a group of private investors, but also with the crowdfunding platform itself. Make sure you read the conditions carefully. With most platforms you can set many things for your collection round yourself, such as the amount or duration of your loan, but there are also platforms where you cannot determine the rules yourself.
With crowdfunding you are not dependent on one financier, which gives you more certainty that the financing will continue. An even more important advantage is that you can already test your business plan among a group of people before you actually start. If you raise a lot of starting capital or donations, this says something about the chance of success for your company.
You need to bring out a lot of information about your company to convince your potential investors. The interest that you pay on your financing is often higher than at regular financial institutions. It is also possible that you get few responses from the crowd on your campaign and you therefore do not raise enough funding.