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Financing for your business - Coggle Diagram
Financing for your business
Debt financing
The debt financing is a method to borrow more money but still increasing the company´s debt
Desadvantages:
Paying Back the Debt. Making payments to a bank or other lender can be stress-free if you have ample revenue flowing into your business. .
Advantages:allows a business to leverage a small amount of money into a much larger sum
Relatives and Friends
advantages
Helps you cope with stress. People who spend time with family and friends find healthier ways to cope with stress
disadvantanges
They may not be able to add value because they may not understand your business.
The start-up capital for many businesses has come as a loan from the
entrepreneur’s relatives or friends.
Equity financing
This method help your business help through the sale of shares, however what this causes is the possible lossof some controls of your company
Advantages: Help to increase the capital of your company
Desadvantages: Your lose control of your company
Credit Unions
A credit union is a nonprofit cooperative organization that offers low-interest loans to members.
advantages higher savings rates and lower interest rates on loans.
desadvantages:Membership required. Credit unions require their customers to be members.