A common question I get is “How do I get a bank loan to fund my startup?” The default answer is that it probably won’t happen, because most banks just don’t make bank loans to startups. The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan. That’s why Angel investors are so sought after by entrepreneurs. Add a comment
Every startup needs access to capital, whether for funding product development, for initial rollout efforts, acquiring inventory, or paying that first employee. Most entrepreneurs think first of bank loans as the primary source of money, only to find out that banks are really the least likely benefactors for startups. Thus “creative” really means maximizing non-bank financing.
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Most entrepreneurs have learned that it’s almost always quicker and easier to get cash from someone you know, rather than Angel investors or professional investors (VCs). In fact, most investors “require” that you already have some investment from friends and family before they will even step up to the plate. Add a comment
This is the final Your Money, Your Lifestyle page for the year so we wish our readers a restful year-end. We hope you take this opportunity to look at your finances and get your money under your control to get it working for you. Write to us with your stories, ideas and what you would like to learn more about in 2013 Add a comment
10 out of 11 private airlines launched in South Africa have failed since 1991, a list which now includes 1time airlines. Many of these new ventures struggled when it came to support, financing and in particular, cash flow. Add a comment
