Presentation Transcript

1. TheFinancingofBusinessStart-up

   Is it easy to get any finance for the business startup? Some people claim that it‘s almost impossible, but try it for yourself. Ing. Ivana Dubcová Translation: Milan Ondrašovič Corrected by: Mgr. Andrea Fabrová
2. 1. Bank Loan A typical way of acquiring finance for busi-ness is a bank loan. But it is traditional that a start-up entrepreneur cannot obtain a bank loan as long as he doesn‘t provide his own sources and warran-ties.
3. 2. CreditCard A suitable financial tool but only with rational use. Its advantage is an interest-free period during which it‘s possible to use the borrowed money – from 30 up to 50 days, when buying an equipment for the business start-up and then for subsequent loan repayment of the borrowed money. There‘s a possibility to use it in a bank transaction for private use and also for the business.
4. 3. AllowedOverdraft A loan product in which the bank will allow to „go into debt“ on the current account. The level of the allowed overdraft depends on the acquired incomes.
5. 4. LoanfromFamily and Friends Family or friends can provide better conditions than a bank – a lower interest rate, a longer period of repayment, irregular repayment, etc. It is always recommended to write a loan agreement and let the notary to check it. A disadvantage is the feeling of pressure and responsibility, especially if the business will not work well. The risk is if the loan provider wants to interfere in the business, or in case of failure the family relationships can be broken.
6. 5. Business Grant It‘s aimed for the registered at the Labour Office as unemployed at least for 3 months. Its level depends on the place of residence, but its maximum limit is approximately 3 700€.
7. 6. Silent Partner A person who invests in the business, but has nothing to do with the management. Silent Partnership Agreement has to be signed, where the income of the silent partner is agreed in advance. A silent partner – investor, can be known or complete unknown person whose interest is caught by a well-built business plan and he considers that as an interesting opportunity to invest.
8. 7. SaleofProperty All the things which we do not use for our life thus, we don‘t need them, can be sold (on the internet, in the bazaars, secondhand shops, etc.) and turned into the money needed for business. Also a smaller amount of money from the selling, for example, bicycle, camera, jewels or books, can help at the business start-up.
9. 8. Non-BankInstitutionsLoan One of the last possibilities that should be considered due to unfavourable conditions – inadequate interest rate, drastic precautions in case of not paying, etc. Consider this possibility only when you are sure about the quick return of your resources invested to the business.