Top 3 ways to finance your business –

Small or medium-sized business, it is not always easy to get by with the financial burdens. The best thing sometimes would be to think about financing for your business. There are now various ways to fund your business. You can opt for internal financing, that is to say by yourself and your associates. You can also opt for external financing, that is to say through loans and donations. Here are 3 of these 2 forms of financing that might interest you.

Crowdfunding: Crowdfunding

Crowfunding, which is participatory financing, has taken on unimaginable proportions since 2017. More and more startups are turning to this beneficial means of financing. Crowfunding is the solution for startups in difficulty, because it allows them to have the help of individuals ready to invest in projects. These are donations. Individuals can request consideration or not, or acquire shares.

The rewards are usually samples of the future product, a mug or a t-shirt bearing the image of the company. This means of financing has many advantages. Startups or SMEs are very satisfied. You can consult theayomi review for confirmation.

ADVANTAGES

The first advantage is that you can have funds from various people without repayment obligation. Sometimes the quid pro quos are not beyond your capabilities. The funding comes from your relatives or your own network. You can be financed, whether you are a small or medium-sized business. In addition, a good crowdfunding campaign helps to make your business known and to have better visibility. It is also a simple and quick method.

DISADVANTAGES

The campaign appeals to a large number of individuals. Therefore, for it to work, you have to really give yourself to the campaign. That’s why it’s best to turn to platforms like Ayomi, which has an artificial intelligence that takes care of everything. Sometimes the “all or nothing” rule is also applied. Either you leave your goal achieved, or you leave empty-handed, which is not likely to happen with Ayomi.

Crowdfunding: Crowdlending

Crowlending is a bit different from crowdfunding. These are always loans from individuals, but also companies wishing to join a project. Since 2019, startups are increasingly turning to this financing to escape all the procedures imposed by banks. You can go through platforms that offer this service to help you find financing.

ADVANTAGES

Crowlending does not require special administrative procedures or guarantees. This is a less restrictive method of financing. You can fund a business that doesn’t even have sales figures and launch your product.

DISADVANTAGES

Platforms can sometimes make your life difficult, because each platform has its constraints. The company has an obligation to repay its loans and the individual has no guarantee of recovering his funds. Depending on the risks, it will be up to the platform to define the interest rates. Here, the return on investment is expected within a well-known time frame.

Sale-leaseback: lease back or leasing

Leasing has nothing to do with crowfunding or crowlending. If these last two are simple and less rigorous, the lease back is quite the opposite. It is not a means of financing that pushes an SME to give up certain assets while retaining the usufruct. Otherwise, the company becomes the tenant of a very expensive asset under a fixed-term contract. Once the term has elapsed, the company can buy back this property.

ADVANTAGES

  • Funding is immediate
  • The debts of the company are less,
  • A tax opportunity is offered to the company.

DISADVANTAGES

Leasing is only valid if the company is ready to put a high-value asset into play.

Each type of financing, regardless of its category, internal or external, has advantages and disadvantages. You therefore have the obligation to weigh the pros and cons of each of them to better guide your choice. The wisest choice is to opt for crowfunding with Ayomi.

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Top 3 ways to finance your business –


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