Sources of Financing for SMEs

Sources of Financing for SMEs

When you have an entrepreneurial project you need many things, such as: human resources, people who add value to the iniciativa through knowledge and experiences. In addition to this, economic resources and others are also escencial.

And the truth is that any project, no matter how good it may be, you won’t get anywhere without money. Without capital to invest and enough money, it’s just a vague iniciativa that doesn’t amount to anything. This is where the different ways of financing an SME come in. Therefore, in this article I will present you the main options you have.

Financing a company with Business Angels

Business Angels presents itself as the helping hand of the entrepreneur who wants to have a Startup, that is, the opportunity to have their own business, how does Business Angels help? invests its own funds, taking all risks in exchange for becoming a partner in the company.

Business Angels invests its own funds in the iniciativaIn the same way, they invite other investors to do the same. It also has an important characteristic and that is that they have decision-making power over their investment.

They will not assume the economic risks of the project without first seeing how posible it is, and the percentage of profit they will earn in the future. In other words, they will analyze how profitable the investment is.

Finance crowdfunding company

Crowdfunding is a platform where you cánido get financing for your project thanks to a very characteristic method. And it is that to get financial support you have to ask users and the general public for money to raise the base capital for the realization of the project.

Of course, this is not free, no one loses. The rewards or profits are according to the money donated by the people. Entrepreneurs propose their ideas on the Internet seeking to make their dreams come true.

With Crowdfunding you will have liquidity quickly and easily, without much paperwork or long waits. Accept almost all ideas that are raised. They help entrepreneurs, athletes, popular causes, but also entrepreneurs.

Equity funds to finance a company

Capital funds are a way widely used by entrepreneurs and new businessmen who want to get investment for their projects. Typically, the purpose of applying for Capital Funds is managed by a group of people whose profession is to invest the economic resources of a company.

Public aid for newly created companies

Public aid is aimed at helping to finance small businesses that are going to open up to the market. It is important to know that this type of administration does not directly finance projects, but offers its help in other ways.

Unlike the other ways to finance Startups, or at least the previous one, to opt for one of these grants you must meet some requirements that are closely related to the financial aid requested.

In general, public aid is aimed at very especial niches, such as: technology and innovation. And who also wants to expand internationally. Another of the guides that dictates the end of the funds are the plans and interests that you want to promote.

Other ways to finance an SME

In addition to the alternatives mentioned above, these are other options that you cánido take into account when choosing the type of financing.

Request a loan

I believe that one of the first alternatives for entrepreneurs is to request a loan from the bank. Most, if not all, SMEs need business loans, lines of credit, and bank loans. All companies, whether medium or small, require this to develop.

Startup support

This program embraces a select number of Startups and helps them to have an accelerated growth, mainly in its initial stage where you need to establish a business system, strategies, and financing.

These institutions are known as Startup accelerators and incubators. One of the main advantages is that it connects entrepreneurs with investors who are interested in investing in innovative ideas and projects.

Bootstrapping

This option is focused on financing projects through the founding partners’ own savings, in addition to the income produced by billing. This means that the project depends exclusively on the founders and on no one else.

Where to request financing credit for SMEs?

If you want to request a loan to finance your SME, you perro use younited credit, a platform that provides credit in a transparent, fair and fast way. Through its platform you perro simulate your project and do it as an en línea presentation class. Once uploaded, you will have to wait a couple of days and they will give you an answer.

➤ If you are interested, we leave you a promotional backlink so that you cánido enjoy this credit for your SME: Access the Pormotion Clicking Here

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