By financen | January 31, 2018 - 4:39 pm - Posted in Business, Funds, Small Business

The main concern with any startup or small business is financing it. There isn’t one approach that everyone can use to get their business up and running rather there are several different routes, businesses can take to finance their project depending on the type and size of the project and the amount needed. Small businesses and startups have even been known to piece their funding together through different sources phased out over time which is a viable option for some. So here are four practical ways to fund your small business.

Personal Savings:

Nobody just gets up one day and decides to start up a new business. There are several hours of ideas and planning behind it so there’s more than likely chance that you will have some savings collected somewhere as you’ll already have an estimate on how much finance is required for your business to break-even at least. Using those savings to fund your business can be the key to your startup becoming profitable as soon as possible since you won’t have to worry about monthly repayments like you would have if you would’ve borrowed from a bank or repaying the loan with a hefty interest rate.

Although realistically, the chances are that you won’t have the entire amount needed to start your business saved up so in that case selling the items you do not need is an excellent option. If you were to look around, you are likely to find items that you barely use, if ever, that could be worth a few hundred dollars and if you were to sell those items and raise the money that way, you’d make sure that you’re keeping 100% equity of your company because you won’t have to sell shares to raise the finance.

The Bank:

If the first option isn’t for you, then securing a loan from the bank is still one of the most practical ways to fund your new business. Getting a loan from the bank isn’t an easy job and you will have to have prerequisites if the bank is to lend you the money. These prerequisites include a healthy personal credit score and a detailed business plan that some business might not have, but once you’re able to secure the loan, it can be essential for business for getting you the maximum yields. That is because if the loan is secured, not only the bank won’t have any issue on how it’s run and you’ll have 100 percent of the business equity to yourself, but you’re also guaranteed the money for the whole term.


Crowdfunding means putting your idea forward on the internet and asking like-minded people to donate you the money, and it is a way that won’t cost you anything. With now successful startups like Ouya and Bitvore getting funded because of crowdfunding, there’s a good chance that you’re business idea will also be funded provided it is a practical and a credible one that people can get behind.

Venture Capitals:

There are firms that will fund your business completely in its early days, and you won’t have to worry about finances so you can completely focus on running your business. However, these firms are expected to have a huge part of your business equity in return when it’s profitable. This option might not be for everyone since you risk losing control of your company, but sometimes it is the most practical way to fund a business.

Author Bio: David

David Simmons is a financial analyst and accounting expert. He has in-depth knowledge about setting up small businesses as well as creating profitable investments. He regularly contributes articles related to business and loans at

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By financen | October 11, 2014 - 6:17 am - Posted in Funds, Personal Finance

Many people have talked about many types of income oriented funds and in many cases, they do not have a bright future ahead, there are some income based mutual funds that are even better than lower risk equity funds. Though some people have written about the risks in income investments like bonds and other high yield investments, it definitely makes sense if you want to own these high income funds.

There are many people who have no choice but to own high income funds, yielding high interest rate, and threatening the recent, strong performance, that a lot of these funds enjoyed. Not all the high income funds are bad. There are many that will perform better for a lot of investors. You just have to find the right one according to your portfolio.

There are some considerations that all investors should keep in mind while investing in High income funds.

Good yield: Even with an above average yield, investors who have invested their money in income funds will continue to earn considerable income. They are not very much affected even if the market value of their income investment drops. It also means investing in higher yielding corporate issues that involves a little bit of risk because corporate issues will not drop as much while rates increase overall. The risk premium that has previously been priced into a lot of these types of investments will diminish. This means that the rates of high yield corporate bonds will rise less than they will for government issues which can and will rise considerably. Hence corporate bonds will have fewer risks than government bonds.

Fund managementGood track record: There are many investors who either lack the resources or funds to create their own bond portfolios. Hence they want to invest their money in mutual funds mainly comprising of bonds. Hence the investment process becomes a lot easier because finding historical, risk-adjusted performance records are simple. An income fund having a strong track record and solid returns will be good for a safer income based investment.

Positive inflows and/or high capitalization: Funds having a steady stream of inflows or those with a large capital base will have greater liquidity. This is possible with any type of investment because it allows investors to draw on them. And when the investment is funded properly, the risk of having the fund closed is reduced considerably.

While investing in high income funds, it involves some risks, the income asset class is a must for all investment portfolios. Excel Funds Management Inc may guide you to take the right decision. If you choose the right one, it will make a big difference and the investors will get a lot of success and satisfaction.

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