Thursday, March 15, 2018

Millionaire Short(On)bread: Securing The Capital For The Ventures That Will Grow Your Wealth

Let’s face it. We’re all temporarily embarrassed millionaires and while we may all
aspire to success, wealth and prosperity, we also know that only a fool expects to
see growth where they’re unable or unwilling to invest in the first place. You likely
have some great ideas that will one day bring you this wealth and success but
getting them off the ground is proving somewhat troublesome. The banks are no
help, of course. Ever since the financial collapse of 2007-2008 they’ve been
consistently gun shy when it comes to lending to those who don’t already have
substantial wealth, resulting in something of a catch 22 for aspiring new

But just because the banks have shut their doors, in fact there are some areas where
a bank will be legally obliged to point you in the direction of alternative funding sources
for business ventures. If you live in the UK, for example, get to know the terms of the  
a little extra capital to get the Townhouse Builders to carry out some renovations on
your investment property or secure startup cash for a new business venture you
have a range of options open to you. Let’s go over a few of the more popular ones...

Government grants

Why get a loan when you can get a non-repayable grant to get your enterprise off
the ground. Depending on where you live you may be able to secure government
funding if you can demonstrate that your business proposition is of educational or
scientific value or of value to the greater economy. Australia, for example, has several.
If you feel you could make a strong case for why your enterprise should be government
funded it can’t hurt to at least apply.

Bridging loans

Sometimes businesses need a short term loan at a time of poor cash flow to
facilitate a capital investment that could lead to future growth. This might include
branching out into a larger premises, investing in a better piece of equipment or software
or sinking some capital into a robust marketing campaign. Whatever your reasons,
you may well benefit from a short term bridging loan. These are specifically designed
as short term loans to tide you over in times of need. They can be secured quickly
and with a minimum of administrative hassle, but they also tend to come at a high
interest rate so they’re not recommended for long term investments where a return
is a way off.

Unsecured loans

One of the most frustrating things to plague aspiring young entrepreneurs and
investors is the speed and velocity with which doors slam shut in your face if you
don’t have a lot of assets to offer up as security. However, the financial services
industry has risen to this changing paradigm, resulting in a range of readily
available unsecured loans. Of course the interest rates are less favorable than
a secured loan but if you have faith in your ideas and factor the interest on
your repayments into your cash flow projections, this is unlikely to phase you.  

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