Finding Financing Options For Your Business Opportunity
What are the best ways of getting finance towards a business start-up or a business opportunity
especially when you don't have any money, a good credit rating or anything of worth to sell?
This is the exact problem I had a few years ago when I so desperately wanted to buy into a franchise
business, I already had some of the cash but needed to raise a lot more My credit rating wasn't great and
the normal route of borrowing from a bank, credit cards or a loan was not one of the options available to
me.
If you have not got the money don't bother
It did get me down a little, and some people would say to me well maybe it's not for you, or it's not
worth getting into debt over. Hearing this made me more determined and instead of giving up I got
creative and started thinking "outside of the box".
Did You Know!
Normally, banks are more willing to loan to you if you are starting a franchise because there is less
risk involved. Franchises (well most of them) are already established successful working business systems
and are far less likely to loose money.
Find my own bank?
If the banks think it's a safe bet to loan you the money to begin your franchise, why not come up with
your own attractive offer where you can borrow money from friends and family and then pay them back with
interest. This is exactly what I did to raise some money to buy my franchise.
Business Plan
I started by doing some research and put together an attractive offer so that at least people would be
interested in investing in me and my franchise. I developed a repayment plan so they new how much return
on investment would give them. They also had the reassurance of knowing it was not a completely new
business and that the business system works and produces an income.
Trust
Obviously the basis of the agreement is trust, especially trust in you but you can also set up legal
agreements where you set out terms and agreements to make it more professional and assure your people
that their interest is safeguarded. I used a promissory note to achieve this a promissory note is to pay
or repay a specified sum of money at a stated time or on demand this is a written and enforceable promise
of payment.
Win- Win
If you do it properly then everyone is a winner, you get to borrow the money you need and they get
interest on their money. Unfortunately this will not work for every business opportunity but at least it
is an option that you can try. The basis of this method is to contact people that you know, and that
ultimately trust you to pay back the money.
