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Get Start Up Finance

By: Elaine Everest - Updated: 15 Oct 2012 | comments*Discuss
 
Business Start Up Finance Business Start

It may be that you are qualified in your electrical trade, have a very good head for business and have spotted a gap in the market where you could set up your own business. However without finance you will be unable to start up your business empire. Finding start up finance should be thought about carefully before you sign on the dotted line.

Family and Friends

It may be that you have family or friends that support you in your wish to start your own electrical business. Perhaps they have business skills and the finance to back your new business. It may be that they can take on the business side of the venture leaving you to work with your skills to make the business a success. However, it is possible that they want to be a sleeping partner recouping a wage from their investment without working in your business. Another possibility is that your friend or family member just has trust in your skills and has leant you the money to get your business off the ground. Whatever the reason think carefully before borrowing money from people you know. If a problem occurs and you are unable to repay the debt you will find it is the quickest way to make enemies of your family and friends.

Banks and Start Up Loans

Most banks welcome new business customers with open arms offering free banking and special deals. Compare what is on offer before choosing your bank as once the free period is over it may be that you will be hit with high charges that can drag your business to its knees in quiet times. These banks will offer business start up loans to those people with collateral. They will still want to see your business plans and projected figures before signing over their money to you.

Borrowing Against Your Home

Think very carefully before borrowing against the collateral in your home. With house prices currently falling and the possibility of you not being able to repay the loan if your business fails you could find that you and your family are without a home and a business if the worse should happen. Try to think of the worse scenario when setting up a business and trying to obtain business start up finance. If you have a solution to this problem, should it happen, then by all means go ahead and sign on the dotted line. It may be that your trade is well paid and there is a demand for your skills. If the worse should happen will you be able to repay the loan and support your family?

Start Up Organisations

There are organisations that will either offer grants or a business start up loan if you fit their criteria. A national organisation called Business Link has people who can advise and point you in the right direction for finance and also guide you through the tricky business of your start up. For those under the age of thirty The Prince’s Trust is able to mentor younger people when they go into business. There is also help for those over fifty years of age who want to start their own businesses. This is the largest group of business start up entrepreneurs.

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