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Business Ideas Forum
Choosing the proper method to raise business capital.
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[QUOTE="King bell, post: 258989, member: 75687"] There are many methods of raising capital for business and choosing the right method can be a critical thing to do. There are different ways one can raise capital and below as some of those methods. 1. Equity financing: Equity financing involves selling a stake in the business in exchange for advancement which can provide growth capital without enduring dept. However, this can be dilutive to existing shareholders It may come with strings attached in the form of board seats of control over the business. 2. Debt financing: dept financing allows business to borrow money and repay with interest over time period this can be a good option for companies with strong cash flow and the ability to repay loan. However this can be difficult to obtain. It can also put the business if the loan is not repaid. 3. Crowdfunding: crowdfunding is a new way of raising capital. Crowdfunding is simply when businesses solicit small amount of money or investment from a large number of people. This can be a good option for those who has strong online presence. However, in crowdfunding it can be difficult to reach the funding target and there is no guarantee the money will reach your target. You just have to do your research and pick up which is best for you. [/QUOTE]
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Choosing the proper method to raise business capital.
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