How to obtain project financing



Contents

  • 1 Loans
    • 1.1 The pros and cons of loans
      • 1.1.1 Positives
      • 1.1.2 negatives
    • 1.2 Loan sources
  • 2 arrows
    • 2.1 The pros and cons of stocks
      • 2.1.1 positives
      • 2.1.2 negatives
    • 2.2 Stock sources
  • 3 References

Loans

The loan is one of the sources of funding projects, as some have to borrow money from a number of different parties, such as banks , for example, with a rush out into account the development of a payment plan, include determining the ability to pay, and the time frame for the completion of the payment, with the need to consult specialists To assist in making financial decisions. [1]

The pros and cons of loans

There is a loan a few pros and cons are: [1]

Positives

  • Interest on loans is tax deductible.
  • The payment timeframe is short or long-term.
  • Ability to take full control of the project.

Negatives

  • The need to pay off the loan within a specified time.
  • Payment starts with a short time after approval.
  • There must be a guarantee against the loan, such as a person's private property.


Sources of loans

There are a number of sources that provide loans to finance projects, including: [2]
  • Banks and credit unions.
  • Lending companies, also known companies supporting projects small.
  • Shops, by installments such as car payments, for example, in installments. [3]
  • Credit cards are stockpiles of money, and retail stores usually use them as a way to help small businesses.

Stocks

Shares are one of the sources of project financing, which is often invested in a person’s funds, or from other people's money, [1] so that investors buy shares from the company in the hope of a return on investment in the future with specific percentages. [4]

Stock pros and cons

The shares have a number of advantages and disadvantages which are: [1]

Positives

  • Less risk than loan.
  • It does not start paying off directly.
  • It can benefit from the skills and expertise of investors.

Negatives

  • The investor can interfere with decisions.
  • The investor takes some control over the property.
  • It takes time to find an investor for the project.

Stock sources

There are a number of sources from which equity financing can be obtained for projects, some of which are: [4]
  • Family and friends: Those wishing to create investment and support projects can seek from the circle of relatives and acquaintances they possess, but this type of investment is often dangerous due to the potential for damage to relationships in the event of failure to pay.
  • Investment companies: These companies often support the owners of small projects, in providing them with the necessary financing with less and simpler insurance.
  • Owners Investors: Such people are usually wealthy people who want to increase their financial returns.

Post a Comment

0 Comments