Business

7 sources of finance for your business


To encourage an SMB to start up or expand, it is important to choose the most suitable loan to prevent it from becoming a nightmare in the long run. Making the right choice not only has to do with interest rates and interest rates, it is also necessary that you take into account the level at which the idea is at.

That is why we bring you 7 financing options so you can consider the most suitable for your project or type of business.

7 sources of finance for your business
7 sources of finance for your business

1. FFF
What Friends, family and fools The first source of funding is known as it is used to start the business itself and occurs when an entrepreneur starts up his business thanks to the help of his family and friends.

2. State funds
They are used to generate business models and project developments, ie when these are more advanced than a simple idea. They are also used to create prototypes that will help bring the product or service to market. The main sources are funds from the Ministry of Economic Affairs (SE), Nafin and Conacyt.

3. Start-up capital
It is a loan that provides the amount of money needed to run a business and fund important activities at the beginning and the beginning of the project. It is delivered when the company is established and has a major product but needs money to run or working capital.

4. Angel investors
Firms that operate typically receive this type of contribution as they receive credit because of their high level of innovation or potential for development. Angel investors tend to be independent or club members as they build networks of this type of corporate support.

5. Venture Capital
Also known as venture capital, it is used when the company is at a certain stage of development. It is a fund that invests larger amounts. It is a temporary contribution of third party resources to a company’s assets in order to optimize its business opportunities and increase its value. In this way, solutions for business projects are given, risk and return are shared.

6th Private equity
It is a fund for large companies and is used to expand business or internationalize. Provides capital in exchange for shares the company grants. It also contributes with monetary resources like contacts, best practices, administration etc.

7. Bank financing
Businesses can resort to bank financing to help them flow in day-to-day business operations. In addition to commercial banking, there is Sofomes This can help you, as can companies involved in financial factoring. The most important thing is to compare the products and bet on the one that best suits your personal needs as the balance has to be a bespoke suit.

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