Ways to finance the start of your business
Need financing? If you start a business or want to grow further with an existing one, the chances are that you need (extra) money. Fortunately, you have many options. For example, approach private investors or request a subsidy scheme for innovative finance loans .
- Private investors
Informal investors also are known as business angels in the business world are private investors who want to invest (part of) their equity in a starting company. They are often former entrepreneurs who are willing to contribute knowledge and expertise as well as capital.
Keep in mind that many informal investors like to remain intensively involved in the business process even after the start. This can be an advantage or a disadvantage, depending on what you like. You often convince a potential investor with a short pitch. Good preparation for such an exciting sales conversation is therefore essential.
You may also go to your bank for a business financing scheme. In order to be eligible for financing through a financial institution, in most cases, you must first write a good business plan. In the kit plan, you show that you have a promising idea in the current market.
- Starters BMKB
Have you been active as an entrepreneur for less than three years, and do you need a business loan? And do you have a promising business, but are you currently unable to offer banks enough collateral in the field of collateral? Then the bank with which you have applied for financing can use a special government scheme: the Starters BMKB (SME loan guarantee).
With a loan of a maximum of 266,667 dollars, the Dutch government guarantees 67.5 percent until the end of this year. In the event of a larger financing requirement, Starters BMKB can be combined with a standard guarantee credit.
- Family and acquaintances
Calling on starting capital with parents, friends, and other acquaintances? Some entrepreneurs are a bit hesitant about this. But if you make clear agreements between themselves, your environment can certainly be a good step towards a successful start to your business.
Preferably record agreements on specific repayment terms amounts and interest payments in a legal contract. In addition, seek timely financial or legal advice. This will prevent any uncertainties and discussions later on, for example, about legal and fiscal aspects.
- Financial lease
It is not always easy for starting entrepreneurs to finance machines, equipment, or means of transport. A financial lease is increasingly being used by starting entrepreneurs and self-employed people without employees. Moreover, the assets are just yours, and that again offers tax benefits.
Did you know, for example, that you often do not need annual figures for a lease? And that you can also lease second-hand equipment? Within one minute, you can calculate what the leasing of your desired business asset will cost you per month.
- Microfinance via credits
Financing via credits can offer a solution if you have a limited financing requirement as an entrepreneur, but cannot go to traditional financial institutions for various reasons. In the country, this form of financing consists of a combination of coaching before and after the start of your business, entrepreneur tools, and microcredit up to fifty thousand dollars.