How to apply for funding for businesses?

This is a question that many users have asked and to which we answer with this article. An entrepreneur who decides to start a business “from scratch” or an activity that has already but want to make new investments , often in the situation of not having enough money to do so. So what does it do: give up just because you do not have enough money to make his initiative? No, absolutely not! It is simply to “go in search” of financial sources interested to finance its business idea or your new investment. These lenders can be banks or private lenders, or public founders or investors who have an interest in participating in the initiative as long as profitable! These lenders before you pay a single penny, want to have certainty and guarantees on the flow of income that the investment is able to achieve.

So an entrepreneur who chooses to rely on external sources of finance has the possibility of obtaining financing only if it is able to demonstrate the validity of the project in a clear and convincing business plan . Among the different lenders, banks, of course, are the main source of loans for businesses. When you turn to a bank, remember that willingness to grant money loan is conditioned by both the validity of entrepreneurship (as demonstrated through the business plan ) and the possibility that you provide adequate guarantees: this is because the banks want to minimize business risk. Is there anyway to say that the Basel 2 has a little bit easier access to credit for entrepreneurs because in recent years the bank is no longer limited only to ask for guarantees but is increasing the attention to some management aspects including:


* The analysis of financial statements : balance sheet, income statement, financial analysis, economic analysis and productivity analysis.

* The analysis of some of the qualitative aspects, namely: analysis of the positioning of your company in the market, analysis of strengths and weaknesses, analysis of the opportunities and threats posed by the market in which the company operates.

* Assessment of managerial conduct in terms of set-exhibitor is, of organization and management
the assessment of the prospects: In this assessment, the submission of a business plan that is well determined in order to obtain the credit.

Depending on the type of investment you need to do, there are various forms of financing more or less right. For example, if you need money to buy a machine from utilize in the production process, as it is an investment in the medium – long term (an asset ) should ask the bank for a loan which has a duration of 3-5 years and a repayment plan well defined. However, if you need money to cover the need for liquidity arising from the fact that the company is not a proper relationship receipts payments, then in this case the type of loan you need to allow you to integrate sales whenever between the time of collection by the time your customers and payments to suppliers.