The Seven Different Forms of Business Finance In the UK

businessman hand drawing design word BUSINESS  FINANCE as concepIndividuals interested in starting their own business will often lack the funds necessary for establishment. Luckily, start up and company owners can benefit from several finance opportunities. Seven types of business finance in the UK tend to be particularly common and popular.

Investment Finance

In this instance a company owner will look for an investor interested in purchasing some of the business and providing funding.

An experienced investor can help for the strategic development of the company. There are no interests or loan repayments to worry about. On the downside, the owner will be giving up some control, which could potentially result in decision making difficulties in the future.

Crowdfunding

The popularity of crowdfunding is growing all of the time. Depending on the company, its goals and its niche, it’s absolutely possible to generate enough funds through a crowdfunding campaign.

This type of finance involves having many individuals “donating” a small amount of money to a cause, a project or a business. Once again, there will be no interest rates or repayments. The problem with crowdfunding is that it may be difficult to convince people to donate. Unless they see the big picture and the appeal of the idea, individuals are going to refrain from giving money.

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