welcome to watchmojo.com in today’s
business school bid we take a look at
the different forms of financing if
you’re looking to start your own company
now definitely not everyone looks to
start their own business and even those
that do sometimes realize that it’s a
tougher challenge and what they actually
want it now starting a business is risky
starting a business is stressful but if
you can play your cards right then just
maybe you might be on your path to
personal and professional success but
before you do you need to consider the
different sources of financing that are
right for your business there are
essentially two forms of financing one
of them is debt and the other one is
equity debt is a riskier form of
investment in the sense that while you
do not give up a share of your company
you are personally responsible for the
money that you borrow in other words if
you want to accept a personal loan from
a family member a spouse or a you know
distant cousin that’s fine and dandy but
if your business were to suffer and you
closed the doors of your business you
might be personally liable for that long
the second form of debt loans is
basically credit cards now nobody’s
really telling you to go out there and
start your business using credit cards
sure filmmaker Kevin Smith bid when you
made clerks but chances are that that’s
one thing you want to avoid mainly
because the interest rates that you get
charged are very high and second of all
if once again god forbid your business
suffers and goes bankrupt it will affect
your credit rating for up to seven years
so that’s definitely not something that
you want on your record the third form
of debt borrowing is essentially credit
lines credit lines are conceptually very
much similar to credit cards the only
thing that’s different about a credit
line is that a the interest rate that
you pay should be lesser credit lines
are fine if the amount of money that you
need is not that much and that you
anticipate being able to generate some
cash flow in the foreseeable future but
otherwise whether it’s a personal loan a
credit card or a credit line it’s money
that you’re borrowing so you will have
to pay it back sooner than later that
has been one form of borrowing that you
can do which is essentially debt
you
business school bid we take a look at
the different forms of financing if
you’re looking to start your own company
now definitely not everyone looks to
start their own business and even those
that do sometimes realize that it’s a
tougher challenge and what they actually
want it now starting a business is risky
starting a business is stressful but if
you can play your cards right then just
maybe you might be on your path to
personal and professional success but
before you do you need to consider the
different sources of financing that are
right for your business there are
essentially two forms of financing one
of them is debt and the other one is
equity debt is a riskier form of
investment in the sense that while you
do not give up a share of your company
you are personally responsible for the
money that you borrow in other words if
you want to accept a personal loan from
a family member a spouse or a you know
distant cousin that’s fine and dandy but
if your business were to suffer and you
closed the doors of your business you
might be personally liable for that long
the second form of debt loans is
basically credit cards now nobody’s
really telling you to go out there and
start your business using credit cards
sure filmmaker Kevin Smith bid when you
made clerks but chances are that that’s
one thing you want to avoid mainly
because the interest rates that you get
charged are very high and second of all
if once again god forbid your business
suffers and goes bankrupt it will affect
your credit rating for up to seven years
so that’s definitely not something that
you want on your record the third form
of debt borrowing is essentially credit
lines credit lines are conceptually very
much similar to credit cards the only
thing that’s different about a credit
line is that a the interest rate that
you pay should be lesser credit lines
are fine if the amount of money that you
need is not that much and that you
anticipate being able to generate some
cash flow in the foreseeable future but
otherwise whether it’s a personal loan a
credit card or a credit line it’s money
that you’re borrowing so you will have
to pay it back sooner than later that
has been one form of borrowing that you
can do which is essentially debt
you
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