Raising Money

Startup Money Matters: Borrow Instead Of Raising Equity

Experts say that for startups borrowing is a much better option than raising equity.

You need money to get started and to take a course of action in order to execute your idea. Some raise equity while others look for a loan. Experts advise that you go for a loan even though it is more difficult. This is because a relationship with an equity investor will last all your life while lenders will not bother you after you pay them back.

Learn more about borrowing so that you understand why you should go for it instead.

Think About the Collateral

How much can you put up as collateral? If you can do 100%, it’d be great because borrowing would be much easier for you then. Collateral can actually be anything from business inventory, deposits, savings, to stock, home equity, etc. However, be very careful here because if you go this way and then your business goes into losses, the bank will have the right to take away your asset and then sell it to get back all its money.

B2B Company

B2B companies are considered more easily than B2C companies for loans because business-to-business companies are more likely to receive their payments on time once they create the invoice and send it over. That is not always the case with customers.

As a B2B company, you should go the ‘factoring’ way so that when you send the invoice you can factor it and be paid some advance while the invoice is being processed.


Those who want to get started with a franchise need to register it in order to be able to get a loan with ease. SBA franchise registry should register your franchise and approve it so that you get the loan. Franchises that are not approved will face a lot of difficulty.

Do Not Buy Equipment

Leasing is a much better option because it is easier and you will be able to get a lease based on your personal credit. You won’t have to worry about anything else and once you are able to make purchases, you can start buying new equipment.

Raising money for a startup can be difficult but you don’t have to stress too much over it. It is much easier to borrow money than to look for an investor. You should only be clear about the above concepts.

Entrepreneurial Learning

Raise money for your startup smartly by going for loans rather than equity because the latter can be messy and full of hassle. Borrowing money from banks is a better option but you should know how to go through with it.

Leave a Comment

Your email address will not be published.

You may also like

Growing a Business

Want Great Guidance ? Find yourself a Super Mentor


They are the gods of small businesses, those inspired individuals who have achieved the highest levels of success. They can be the shining beacons who light up the path of running your business with their vision, wisdom and wealth of resources and contacts. They are The Mentors.

If you are fired with the passion to take your business to great heights, the best thing to do is find yourself a super mentor. Here are some tips to help in your quest

Pinpoint your Need

Sit down and focus your thoughts on your business growth strategy. Which area of the business needs a lift. Is is staffing, is it the finances, is it the production, is it the your lack of customers or is it the business as a whole that needs a makeover. Once you’ve zoomed in on the sore spot, this is where you need…

Read More
Growing a Business

Dreaming Big? You can Move Mountains with these Business Productivty Tips


You may be full of admiration for some people who seem to manage themselves and their work so usefully and efficiently. They seem to fit in so much productive work into the same number of hours which everyone has.. Let’s look what makes them tick and take a few tips.

Learn to identify your most productive hours

Its true, most productive people know which time of the day they can be most creative and efficient. They identify and allot these hours for the best part of their work. This way they are able to give their 100% awareness to the job and business productivity.

Early to rise- A winning habit

Waking up early is a personal habit that has all the plusses on its side. You need not necessarily go to work that early. It’s a habit that gives you more time for personal care, like mediation, exercise, walking,…

Read More
Growing a Business

Leadership Qualities that can make you an Icon


You may have reached the leadership position through sheer dedication to performance and a do or die attitude . Now that you are at the top, your viewpoint needs to change. You have to now be a role model, one whom others will look up to and follow. Here are some tips that can shape your leadership and management skills

Be Competent: Employees will look up to a leader who has good industry knowledge and management skills. If you do not possess these skills you should surround yourself with knowledgeable people who can offer good counsel. Competence is a trait all employees will admire.

Be Trustworthy: No one will look up to a person they cannot trust. Your employees will want to rely on you and count on you. In difficult situations, leaders are expected to apprise their employees of the situations and find solutions on how to address…

Read More
Raising Money

Are You offering Your Services Using the Right Pricing Strategies?


In these times of fierce competition, business people , mostly those that offer services and belong to the service based industry, are finding it a challenge to implement the right pricing strategies. It is virtually a struggle to set the right business price that will retain and attract the customers, and not drive them away. Follow these tips, the crucial dos and don’t s and you may be in a much better position to offer your services at the best price.

Maintain your Business identity and Dignity

If you are offering a unique or special product or service, don’t underrate it just because you want to build a better relationship with the customer. This will just cheapen your offering as another run of the mill. If its something special you are offering the customer, then communicate this fact to the client and get the equation right with the most…

Read More
Raising Money

What is a Fair Wage? How Do you Assess Fair Wage?


How do you figure out a fair wage?

This is a very common question for startups and small businesses. They can’t seem to decide or understand how to set wages and manage reputations at a time. They are determined to pay well but they also have to think about encouraging their employees to stay with them for a long time. This is why there is a need to think strategically.

Listed below are a few expert tips to help you decide:

Don’t Focus Only on Money

Money should never be the main focus for you or for your employees. You should decide on the wages in such a way that your employees are tied to your business. When your business does well they should be able to taste that success and vice versa.

Also, think about additional perks such as exclusive benefits and time off. Many employees value this more than the overall…

Read More
Raising Money

Tips to Winning Hard Negotiations With Ease


While some negotiations are easy, others are quite hard to win. If you stumble you will lose.

Whether it is a potential client or an investor, negotiations can be very tough and frustrating. The problem is that the moment you let your frustration overwhelm you, you will lose the deal and you will give in to whatever is being offered to you. In order to avoid that, here are tips to overcome tough times and to win even the hard negotiations:


Know your opponent as well as possible. This is the rule no matter what you do. You should understand your opponent to the T. Who the person is, what his culture is, what he thinks, what he stands for, how is his network, etc. are the questions you should ask yourself and answer through research before meeting up for the negotiation. Understanding the opponent will give you a great advantage.


Read More