Do you need finance to support your new start-up?
Bank lending is proving increasingly hard to get in today’s economic climate; a lack of funding when you are hoping to set up your own small business can be a huge stumbling block. At The Prince’s Initiative, we think a recent article by The Director gives a good overview of 2 alternative options of finding a source of income to support your new self-employment venture.
1. Angel Funding
What is it?
Angels are high-net-worth individuals, they are usually entrepreneurs who invest in enterprises that are at the early stages, most commonly they invest in business start-ups. So they are definitely an interesting route of funding to look at if you are an entrepreneur over the age of 50.
According to The Director, Angel investors are not motivated by money, but usually want to invest in something that is fun or they are increasingly interested in financing self-start ups that help others.
Angels are a great source of funding, but they don’t just provide money, they can offer a wealth of experience, networking opportunities and their own skills to add to your company. If you have investment from an Angel, you will also form a beneficial relationship.
For more information on Angel Funding have a look at:
British Business Angels Association
What is it?
Crowdfunding was initially set up for charities and aid relief, however it now has branched out to help small start-ups too. It involves the collective cooperation, attention and trust by people who network and pool their resources, usually via the internet.
Individuals and institutions can bid for loans of up to £250,000 via crowdfunding.
What is great about this source of finance is that it can be a quick way to secure a loan. Crowd funding sites are open 24/7 and investors can bid on loans as quickly as borrowers request them.
For more information on Crowdfunding go to:
The information given above is from an article in The Director Magasine August/July 2012