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Funding a business
Starting A Business Without Capital
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[QUOTE="behappie, post: 945, member: 57"] There is no business that can be pioneered without capital. Capital is resources which owners of businesses put into their businesses with the view of getting profit at the end of a period. If the owner does not invest into the business, who then will? The owner or owners of the business have to show others in a most emphatic way that they believe in their business through the amount of their resources they commit into it. A business is either financed through the owners or owner of the business and outsider. Outsiders can only invest in a business if they are assured of their funds and returns and the amount of owner-inputed resources into the business. Capital is not necessarily money, it could be property or any other item of value that is capable of generating future inflow for the business. Sometimes, capital may not really be enough to execute some projects or transactions of the business, hence there is a need for loan. Loan should be used to finace a business when it is most necessary. Defaulting in repayment of loan and accruing interest can affect the credit ratings of the business and may scare away potential customers. [/QUOTE]
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