There are many ways you can raise finance when you’re starting a business, and it’s essential that you choose the right business finance for you.

     You can borrow from family, use grant funding or even raise finance from outside investors, but most start-ups use a combination of all of these and then tailor them to their specific needs.

     Here is a list of 10 ways to fund your business without a bank loan.

     Use your own money – The best way to raise finance to start a business is of course to use your own savings; especially as very little seed money is required to set up your business. At one of my workshop presentation, I was approached by a lady who said that she really wanted to get started and the business model that best suited her was the one-to-one training. She went on to say that she had the money to get started but had the money in an ISA account and she didn’t want to take it out and lose the interest.

     And I’m thinking to myself what interest?  1.75%?

     I replied, what she should be doing is investing in a business and make that investment work for her.

     Ask friends and family – Immediate family members may be a good option for business finance as they’re more likely to give you money and they will provide you with better terms than a bank.

     But the downside to raising finance from family and friends is that it can place tensions on the relationship, worse still, they could lose their investment if your start-up doesn’t work out.

     When you’re raising finance from friends and family, make sure that you have made a written loan agreement, as this should help avoid any misunderstandings between you.

     Peer-to-peer lending. This is a process whereby a group of people comes together to lend money to each other. It’s been around many years, in examples like small business groups or ethnic groups supporting similar efforts. In the start-up context, look for a successful entrepreneur peer willing to fund similar new ideas.

     Crowdfunding – Crowdfunding is, essentially, an extension of the charity sponsorship page in the business world. People come together, on crowdfunding sites, to pool money towards a particular venture or idea – it could be ten people putting in £500 each, or 3,000 people each giving £1.

     Donors or investors on crowdfunding sites, such as Kickstarter or Crowdcube are typically private individuals providing small sums, so they’re unlikely to give you the sort of grilling, and rigorous conditions, an angel investor would. You can also scope out the popularity of your idea via a crowdfunding site, and get some crucial word-of-mouth marketing going

     Micro-loans – If you only need a very small amount of money, you should think about a micro loan, which is tailored to your circumstances and can be used alongside funding from other sources.
A number of companies in the UK offer micro loans; where you can receive funds from £5,000 to £25,000, with generous repayment terms ranging from one to five years.

     A Start Up Loan – If you are starting a new business or you have been trading for less than 24 months, you may be eligible for a government-backed Start Up Loan. These are unsecured personal loans of up to £25,000 that must be used for business purposes and a repayable at fixed 6% interest p.a. 

      Cash advances – Companies such as Worldpay, Business Cash Advance and Credit for Merchants allow businesses to receive money upfront before debts and invoices have actually been paid.

      Under the terms of the agreement, the financier purchases a fixed percentage of your future credit/debit card transactions at a discount, and then advances the cash into your bank account, usually within 10 working days.

 

     Repayments will be scheduled at a pre-agreed percentage of every transaction – usually between 10 and 20%.

     With a cash advance, you can secure up to £100,000 without the burden of collateral or fixed monthly repayments, only paying the advance back when your customers pay you.

     But you may have to meet a rigorous set of conditions; for example Business Cash Advance insists all clients must have been in business for at least a year, with a minimum monthly turnover of £3,500 and the ability to process credit and debit card transactions. 

     Asset finance – An asset-based loan works the same way as a mortgage. You borrow money against an existing possession, and, if you can’t meet your obligations, the asset is repossessed.

     Assets which can be used as collateral include property and premises, accounts receivable, inventory and equipment.

     Although interest rates are often punitive, asset-based finance can be extremely useful for a company desperate for cash, or a business backed by valuable property which has yet to make major profits – such as a hotel or plant hire specialist.

     Angel investors – If you manage to impress a business angel, they may provide investment in return for an equity stake. Most angels are seasoned entrepreneurs themselves, so they know what you’re going through and they’re likely to be patient.

Furthermore, the process of finding and enticing an angel is far less daunting than you might think. If you can put together a tight pitch with realistic growth projections, and are prepared to give up a share of your business, this could be the route for you.

     Community schemes. – A plethora of community development finance initiatives, or CDFIs, have been set up around the country to help individuals, and businesses, denied credit by banks and lending companies. CDFIs provide help with everything from bridging loans and working capital to funds for property and equipment purchase, but their terms are usually restrictive; you usually have to be either a micro-business or a social enterprise.

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P.S. Recently I came across an excellent tips from Warren Buffet who knows a thing or two about making good use of your money, they are as follows:

On Money: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1,”

On earnings: “Never depend on single income. Make investment to create a second source.”

On Spending: “If you buy things you do not need, soon you will have to sell things you need.”

On Savings: “Do not save what is left after spending, but spend what is left after saving.”

On taking risks: “Never test the depth of river with both feet.”

On Investment: “Do not put all eggs in one basket.”

On expectation: “Honesty is a very expensive gift. Do not expect it from cheap people.”

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Thought for the day

“Risk comes from not knowing what you are doing!”

– Warren Buffet

 

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An Invitation (for you and a guest) to attend a

FREE Recruitment Startup Workshop

We are currently running FREE Recruitment Startup Workshops that are designed to give you an insight into the key skills and knowledge needed to set up and run your very own home-based recruitment agency.

No previous recruitment or business is required as anyone looking to start up will have direct 1-2-1 training with our companies CEO who has over 40 years recruitment industry experience.

If you would like to attend one of our Free Workshop, then all you will simply have to do is to contact our recruitment centre today to book your place on 0800 622 6877.

 

Here are some of the key points that will be covered at the Workshop presentation: 

• Introduction to a new and unique business designed for complete newbies to make money…
• Why now’s the perfect time for you to start your very own home-based recruitment agency…
• Why it is nearly impossible for your home-based recruitment agency to fail…
• How you can earn a substantial income working just two to three evenings per week…

• How to find immediate vacancies and candidates for you to generate an immediate income…
• Revealed for the first time exactly how recruitment agencies make their vast fortunes…

• How to secure grant funding to start your home-based recruitment agency…

​And much, much more….

 Places at these workshops go quickly, and, depending on numbers, this may be your only chance to benefit from our FREE Recruitment start Up Workshop.

 

So, make sure you book today, right now, while you're still reading this newsletter.

Here's how to register:

Simply contact our recruitment centre on 0800 622 6877 to register for your free ticket to attend the event.

 

 

Clients who attend the Workshop Presentation will receive the following free gifts just for attending:

FREE GIFT #1: Introductory Recruitment Start-Up Online Course - The programme will give you an insight as to what this business is all about and an opportunity for you to find out more about how you can earn a substantial income running your very own recruitment agency. Topics covered in your Free online course are as follows:

• Chapter 1: Introduction to starting a home-based Recruitment Business.
• Chapter 2: Overview of the role of a Recruitment Consultant
• Chapter 3: The benefits of starting your very own home-based Recruitment Business
• Chapter 4: How to set up and run your home-based Recruitment Business on a ‘Shoestring’ budget
• Chapter 5: Why now is the perfect time for you to start a Recruitment Business
• Chapter 6: - How to make £5,000 from one introduction in 30 days or less?

FREE GIFT #2 Recruitment Agency Revolution book. You will receive a physical copy of our CEO’s latest book Recruitment Agency Revolution. ‘The explosive growth of the internet and the easy accessibility of new e-recruitment tools such as job boards and CV Databases make this a perfect business opportunity and an ideal time for you to learn how to earn 10 times the average salary in a few short weeks. This Book will provide information on the first steps to getting started. (The book also has testimonials from over 120 of our amazing clients and customers who have all benefited from this remarkable recruitment agency business opportunity, that is taking the industry by storm.)

 

 

FREE GIFT #3 Accountancy Software Package - easy-to-use, full training programme included – This software is designed to help you to easily manage your finances. Accountancy Software Package -dedicated for small to medium-sized businesses. The programme is web-based and will empower you with the tools you need to manage your accounts and liberate you from the mundane tasks that can slow you down.

 

FREE GIFT #4 Draft Business Plan - Your recruitment Business Plan will help you to know exactly what steps you need to take in order to get your business generating a healthy income in the shortest time possible. It will also serve as a tool for helping you to quickly raise funds for your new venture. Having a business plan allows you to think more clearly about what you’re doing and where you are going.

 

FREE GIFT #5 Free Manual “How To Successfully Apply For A Start-Up Grant”. If you want to know the secret of how to find grant funding to help get your recruitment agency off the ground then you will simply need to come along to the event and claim your copy of this free manual to find out how you can help yourself to £billions of grant funding. As an aside, 99% of people miss out on securing a grant due to one very simple oversight which is covered in a future newsletter.

 

Yes, all these 5 incredible bonuses (Valued at £497) are yours completely free at the end of this event.

Simply contact our recruitment team on Free Phone 0800 622 6877 to find out the dates and venue to reserve your place.

There is one thing you should know, places at these workshops go quickly, and, depending on numbers this may be your only chance to benefit from our FREE Recruitment Start Up induction programme.

 

P.S. Free Book: Get my book ‘Recruitment Agency Revolution.’ This book is your first step to finding out exactly how recruitment agencies make their vast fortunes and more importantly how you can have your slice of this very lucrative industry.

 

The book includes information about starting a recruitment agency that you won’t find anywhere else, on or off the internet.

 

Plus, there is a chapter with testimonials from over 120 of some of my amazing clients and customers who have all benefited from this remarkable business opportunity.

 

This 162-page book covers in great detail the full recruitment process from finding jobs to sourcing suitable candidates and is free; you just cover shipping and handling.

 

CLICK HERE Right Now to order your FREE book.

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P.P.S. Testimonial: “Joe took us through the process of calling clients and was key for us in being able to become confident in what we were doing. We made our first placement, and literally, the doors opened; we made five placements one after the other, and that was a total of £39,000 that we billed within the space of six weeks!”

Chris P.

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