Financing Your Company
This section provides information on sources of finance you may wish to
access at various stages of your company's development, from start-up through
to expansion into international markets.
Financial advisors often assume that start-ups are externally funded, but
the reality is that many or most companies, particularly service firms are
established using the owner's income from other employment. The benefits of
such arrangement includes freedom from interest costs, as well as freedom from
the time consuming process of obtaining external financing, time that might be
better spent on various business development activities.
There are a number of government programs available to assist you in
financing and expanding your company. Here are a few examples of regional
programs.
Start-Up Financing
Commercial sources you will want to investigate for start-up financing
include commercial banks and venture capitalists. You may also want to
evaluate various government programs, but when considering these, be aware of
the amount of time expended in negotiating loans or grants, time lapses
between application and approval, and the wide range of costs that are not
included in government's calculation of "eligible costs."
Possible sources of financing:
Business Expansion Financing
Self-financing business expansion, whether through personal resources or by
using the company's profit from ongoing sales, is both the preferred method or
the reality for many companies, particularly service firms. If external
financing has been obtained for other phases of the company's business, and if
all repayments have been made promptly, the original source will generally be
the most cooperative about providing new financing.
Possible sources of financing:
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