
welcome to watchmojo.com in today’s business school bid we take a look at
business school bid we take a look at
business school bid we take a look at the different forms of financing if
the different forms of financing if
the different forms of financing if you’re looking to start your own company
you’re looking to start your own company
you’re looking to start your own company now definitely not everyone looks to
now definitely not everyone looks to
now definitely not everyone looks to start their own business and even those
start their own business and even those
start their own business and even those that do sometimes realize that it’s a
that do sometimes realize that it’s a
that do sometimes realize that it’s a tougher challenge and what they actually
tougher challenge and what they actually
tougher challenge and what they actually want it now starting a business is risky
want it now starting a business is risky
want it now starting a business is risky starting a business is stressful but if
starting a business is stressful but if
starting a business is stressful but if you can play your cards right then just
you can play your cards right then just
you can play your cards right then just maybe you might be on your path to
maybe you might be on your path to
maybe you might be on your path to personal and professional success but
personal and professional success but
personal and professional success but before you do you need to consider the
before you do you need to consider the
before you do you need to consider the different sources of financing that are
different sources of financing that are
different sources of financing that are right for your business there are
right for your business there are
right for your business there are essentially two forms of financing one
essentially two forms of financing one
essentially two forms of financing one of them is debt and the other one is
of them is debt and the other one is
of them is debt and the other one is equity debt is a riskier form of
equity debt is a riskier form of
equity debt is a riskier form of investment in the sense that while you
investment in the sense that while you
investment in the sense that while you do not give up a share of your company
do not give up a share of your company
do not give up a share of your company you are personally responsible for the
you are personally responsible for the
you are personally responsible for the money that you borrow in other words if
money that you borrow in other words if
money that you borrow in other words if you want to accept a personal loan from
you want to accept a personal loan from
you want to accept a personal loan from a family member a spouse or a you know
a family member a spouse or a you know
a family member a spouse or a you know distant cousin that’s fine and dandy but
distant cousin that’s fine and dandy but
distant cousin that’s fine and dandy but if your business were to suffer and you
if your business were to suffer and you
if your business were to suffer and you closed the doors of your business you
closed the doors of your business you
closed the doors of your business you might be personally liable for that long
might be personally liable for that long
might be personally liable for that long the second form of debt loans is
the second form of debt loans is
the second form of debt loans is basically credit cards now nobody’s
basically credit cards now nobody’s
basically credit cards now nobody’s really telling you to go out there and
really telling you to go out there and
really telling you to go out there and start your business using credit cards
start your business using credit cards
start your business using credit cards sure filmmaker Kevin Smith bid when you
sure filmmaker Kevin Smith bid when you
sure filmmaker Kevin Smith bid when you made clerks but chances are that that’s
made clerks but chances are that that’s
made clerks but chances are that that’s one thing you want to avoid mainly
one thing you want to avoid mainly
one thing you want to avoid mainly because the interest rates that you get
because the interest rates that you get
because the interest rates that you get charged are very high and second of all
charged are very high and second of all
charged are very high and second of all if once again god forbid your business
if once again god forbid your business
if once again god forbid your business suffers and goes bankrupt it will affect
suffers and goes bankrupt it will affect
suffers and goes bankrupt it will affect your credit rating for up to seven years
your credit rating for up to seven years
your credit rating for up to seven years so that’s definitely not something that
so that’s definitely not something that
so that’s definitely not something that you want on your record the third form
you want on your record the third form
you want on your record the third form of debt borrowing is essentially credit
of debt borrowing is essentially credit
of debt borrowing is essentially credit lines credit lines are conceptually very
lines credit lines are conceptually very
lines credit lines are conceptually very much similar to credit cards the only
much similar to credit cards the only
much similar to credit cards the only thing that’s different about a credit
thing that’s different about a credit
thing that’s different about a credit line is that a the interest rate that
line is that a the interest rate that
line is that a the interest rate that you pay should be lesser credit lines
you pay should be lesser credit lines
you pay should be lesser credit lines are fine if the amount of money that you
are fine if the amount of money that you
are fine if the amount of money that you need is not that much and that you
need is not that much and that you
need is not that much and that you anticipate being able to generate some
anticipate being able to generate some
anticipate being able to generate some cash flow in the foreseeable future but
cash flow in the foreseeable future but
cash flow in the foreseeable future but otherwise whether it’s a personal loan a
otherwise whether it’s a personal loan a
otherwise whether it’s a personal loan a credit card or a credit line it’s money
credit card or a credit line it’s money
credit card or a credit line it’s money that you’re borrowing so you will have
that you’re borrowing so you will have
that you’re borrowing so you will have to pay it back sooner than later that
to pay it back sooner than later that
to pay it back sooner than later that has been one form of borrowing that you
has been one form of borrowing that you
has been one form of borrowing that you can do which is essentially debt
can do which is essentially debt
can do which is essentially debt you
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