A primary inhibitor of business start-up is that few people have the financial cushion to give up a job for the uncertain income of a start-up venture. In a recent survey, about 30% of new business founders identified inadequate funding as their biggest hurdle, and a similar amount said lenders were too conservative. About 15% reported being unable to find investors, and a similar amount claimed a lack of collateral.The prospective new business owner approaching a lending institution should keep in mind the “five c’s of credit:” character, cash flow, capital, collateral, and (economic) conditions. Character consists of the borrower’s integrity, experience, and ability; particularly close attention is paid to a borrower’s credit history, which is a matter of record. Should you decide to try to fund a startup through a commercial lender, the remaining criteria are addressed in the loan request.The loan request should include a credit application, financial information such as tax returns and personal financial statements, and a brief business plan emphasizing projected financial performance of the new venture. The plan should demonstrate how the business will generate sufficient cash flow to repay the loan, specify collateral, and show the borrower’s personal investment.In addition to servicing the… Read full this story
- Small Business Industry Study Finds IT Companies Performing Well In Most Financial Measures
- ICAI looking into financial disclosures of Byju's, says President Debashis Mitra
- Startups in the spotlight: Remix, Texture and Airtable
- How Level-Funded Health Insurance Can Help Startups Provide Better Care While Reducing Expenses
- Your Business Idea Is Worthless Until You Validate It
- Is funding winter a reality for Indian startups?
- New-age business shares bleed further; analysts recommend caution
- Who To Hire: How To Pick A Winning Team For Your Climatetech Startup
- Moderna CEO Stéphane Bancel in Conversation with Newsweek's CEO
- Paisabazaar Reaches Annualized Rates of Rs. 12,000 Crore Loan Disbursal and Half Million Credit Cards Issued
Financial Issues in Business Startup have 309 words, post on ezinearticles.com at July 25, 2005. This is cached page on NGHONG. If you want remove this page, please contact us.