3) Business financing (Access to finance/ Microcredit/ Crowdfunding/ Start-up companies/ Franchising)
When A company is founded, it is named star-up company. Star-up company is A business that is in the first stage of its operations. These Companies are often initially financed by their founders as they Attempt to capitalize the development of a product or service for Which they believe there is a demand. Due to the limited revenue and The initial high costs, most of these small operations are not Sustainable and they need an important financing to can survive. The Problem for this companies in their beginnings is the difficulty to Get external financing as the major of the investors don’t rely on Their solvency and liquidity because their activity is still little. / / / Some Of the most important sources of financing, external and domestic, Are the venture capital, angel investors, bonds, lease, crowdfunding And microcredit. / / / Venture Capital is the financing that comes from companies or individuals in The business of investing in young and privately held Businesses. They provide capital to young businesses in exchange For an ownership share of the business. / / / Angel Investors are individuals and companies that are interested in Helping small businesses survive and grow. So, their objective is More than just focusing on economic returns but they are still Interested in proﬁtability And security for their investment.
Bonds Are instruments which are issued for the company that needs financing And gets in exchange an amount of money that must return in a due Date together with an interests rates. It is one of the most common Form of financing. / / / Lease Is a legal document outlining the terms under which one party agrees To rent property from another party. / / / Microcredit Is a variation on traditional credit service that involves providing Small loans to people who would otherwise be unable to secure credit, Typically because of poverty. / / / Crowdfunding Is a way of raising finance asking a large number of people for a Small amount of money. Nowadays, internet is a very good tool for Talking with a wide number of investors in order to get financing.