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Where to Find Investors for your Business

Image courtesy of Marie-Chantele Turgeon
Image courtesy of Marie-Chantele Turgeon

It can be hard when you need to expand your business and do not have the capital to do so. You may have a big demand for stock, for example and not be able to afford to buy it or need to employ more staff so that you can provide a better service but need to invest in them before you start seeing a return. There are different that you could choose to finance this.

You could invest in the business yourself if you can afford to. This is something you may have done already but it may be worth doing some more. Do not take a personal loan to finance this though as if your business does go bankrupt, you will still have to repay it, even if there is nothing to pay it with. A business loan could be a better idea, but you will have to come up with a good business plan and find a bank that is willing to finance you.

These days there are alternative ways of getting money which small companies consider using. The first of this is peer to peer lending. This is where other people will lend you a sum of money and you will agree payments back to them at a set interest rate. It is very similar to using a bank, but the money comes from individuals rather than an organisation. This can be a better alternative to a bank and one that people who cannot get credit form banks may consider.

Crowdfunding is something that some people consider using as well. They will send out a request online for money, explain what it is for and perhaps offer something back if the investment is a success. It is something which takes some research and will need a lot of promotional work done but can work successfully in some cases.

Some people may consider asking family and friends to invest in their business. This can sound like a good idea in theory but it can lead to problems. It may be that family and friends will expect to get a good return on their investment, have some perks or be able to get the money back whenever they wish. All of these things could cause problems and may lead to problems in your relationship with them. This may not be worth it as it could mean that you will fall out with them for life. It is well worth thinking hard about before doing.

So there are many options outside of the more obvious ones these days. This is great because it means that you will be more likely to find investment for your business. However, it is important to make sure that you choose the right one for you, one that will work and that you can manage repayments for without making your cash flow difficult. It is worth making sure that you take some time in making the decision so that you can choose the best option available.



Rachel Henderson is a professional freelance writer from the UK. She writes on many subjects but specialises in personal finance. As well as contributing to various blogs and websites she has her own website tracking her own money making process and sells her books through

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