7 SOURCES OF FINANCING YOUR BUSINESS

Very good, if you have enough money to start a business. But it happens very rarely. Most often, we have to look for additional sources of financing. Let's find out where you can get money for opening and developing a business.

Main sources of financing:

-Investments

-Wentur investment

-Credits

-Leasing

-Franchising

-Government order

-Grants and subsidies

Investments
Investment is a long-term investment of capital in enterprises of different industries, entrepreneurial projects, socio-economic programs or innovative projects. Investor - a legal entity or an individual investing own, borrowed or other raised funds in investment projects.

Investments are foreign, state, private, production, intellectual, controlling, non-controlling.

From the point of view of the direction of actions, investments are divided into initial investments, investments for expansion, reinvestment, investments for the replacement of fixed assets, investments for diversification.

Venture investment
Venture is a small-scale enterprise engaged in development projects or other high-tech works for implementation of risky projects. Venture is external and internal.

An internal venture is organized by the authors of the idea and a venture entrepreneur. The external venture attracts funds for projects through pension funds, insurance companies, savings, state funds and other investors.

Credit
Loans to legal entities are now provided by most banks, there are banks that provide loans without collateral. But interest rates depend on the availability of collateral and financial indicators of the borrower. As a rule, loans to start-up entrepreneurs are issued by the state through a special fund that provides loans to small and medium-sized businesses.

Leasing
This is a type of financial services, a form of lending when acquiring fixed assets by enterprises or very expensive goods by individuals. The lessor undertakes to acquire the property of the lessee specified by the lessee from the seller specified by him and provide the lessee with this property for a fee in temporary possession and use. The contract can provide that the choice of the seller and the acquired property is made by the lessor. The lessee may initially be the owner of the property. In fact, leasing is a long-term lease of property with the subsequent right of redemption.

Franchising
This is the lease of a trademark or commercial designation. The use of a franchise is regulated by an agreement between the franchisor (the one who provides the franchise) and the franchisee (the one who receives it). As a rule, the contract regulates the amount of deductions for the use of a franchise (it can be fixed, one-time for a certain period, making up a percentage of sales). The requirement of deductions may be absent, but in this case the franchisee undertakes to buy from the franchisor a certain amount of goods / works / services.

Government order
This is an order for the supply of goods, the performance of work, the provision of services from the federal budget, the budgets of the constituent entities of the Russian Federation, local (municipal) budgets and extrabudgetary sources of funding.

Grants and subsidies
Grant is a gratuitous subsidy to enterprises, organizations or individuals expressed in cash or in kind. Grants can be received by non-profit and non-governmental organizations. On the territory of Russia is a large number of funds, but many of them limit their activities to a specific region or territory. Also, all funds are divided by subject of activity.

Subsidy is a grant in cash or in kind provided at the expense of the state or local budget, as well as special funds to legal and physical persons, local authorities, other states.

Direct subsidies are direct financing of programs, industries, enterprises, regions (for example, financing of basic scientific research). Indirect subsidies are indirect support through instruments of tax and monetary policy (for example, preferential taxation of corporate profits, return of direct taxes and customs duties, and so on).

Such opportunities for obtaining financing are for beginners.