Points to consider while raising Entrepreneurial finance

Funding proposal

It doesn’t matter whether you are looking to raise Entrepreneurial finance from your bank, financial institution, private investor or a Venture Capitalist. At the end of the day you will need a good funding proposal.

The funding proposal outlines the details of your business plan, the vital numbers and forecasts of performance and financial viability. Your financiers are looking to invest in a solid business plan, so don’t leave any stone unturned when you draft your funding proposal.

Selection of creditors

One of the costs in any Entrepreneurial financing is the cost of inputs which can be in the form of services, supplies, raw materials or even finished products. These costs can represent a large portion of the initial funding

Traders are generally given start-ups credit in view of repeat business. So, select your creditors after due research and ask for longer credit periods to cut down your working capital requirement.

Investors

Investors, are a rich source of raising entrepreneurial finance. However, what you, as an entrepreneur need to be careful about are the terms of credit because this line of credit comes in the form of debt or equity. Though Debt is costly in the short term, Equity will reduce your share of revenue in the future. Depending on your forecasts and needs, make sure that you manage these terms.

Clean credit history

Your credit history is going to play a big role when you are looking to raise entrepreneurial finance, especially from the banks. So if you’ve been defaulting on your credit card or loan repayments, chances of you being able to raise entrepreneurial finance from your bank are slim. There are many ways to better your credit history and your past dealings with the bank and we suggest you start putting them into practice if you are looking to raise entrepreneurial finance in the near future