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Does the amount of capital matters in starting up a business?
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[QUOTE="King bell, post: 265128, member: 75687"] Yes, the amount of capital matters in starting up a business. You must have at least the minimum amount of capital that you need to run your business. This amount of capital is sometimes referred to as working capital (or reserves). Without this, you will not be able to follow through on your plans and would be forced to find some other way or sell their idea or product. You might be asking yourself… why does the amount of money matter? Well, it matters because if you do not have enough capital for your business, then it could make it difficult for you to meet payroll obligations and continue running the business. If this is an issue with your company that needs resolving, then get in contact with a reputable commercial bank in order to arrange funding for your startup. They can usually arrange funding via a short term loan or if the business is high risk, they can arrange funding via a joint venture or borrowing. The size of the loan will depend on many factors and it would be best to have the commercial bank that you take your business to talk to them about this issue over the phone so that you are able to ask about their policies and what you could expect from them. The way that it will work is that a business partners with a bank for as either long as needed for funding or for as long as possible until then company is able to start generating enough income and then pay back the money. Once this happens, then the bank would no longer see any need for providing any further funding. [/QUOTE]
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Does the amount of capital matters in starting up a business?
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