Basic Equipment Financing

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Basic Equipment Financing

Basic Equipment Financing

Every startup business needs some basic equipment to get going

Make the deal as formal as possible if you choose to ask for financing from friends or family. Both of you should sign a promissory note with the amount of the loan, the interest to be paid and the repayment schedule. This way each of you knows what you agreed upon, and you can avoid misunderstandings.

You can also get financing by selling ownership interest in your business. If you sell ownership, the structure of your business will be more complicated.

Every startup business needs some basic equipment to get going, along with some financing. Depending on the kind of business you are thinking of, you can start with a computer, a printer and internet connection, or you may have to buy expensive equipment. Here are some tips about how to finance your business.

The first thing you need is a business plan if you ask for a loan from a bank. Banks want to make sure you know exactly how to make money from the business you intend to start, and you will repay the loan. The business plan has to convince the agent that there is need for the service you are thinking of, you know who your target is, and what is the market share you expect to have.

If you ask for a loan from a bank, the first thing you need is a business plan. Banks want to make sure you know exactly how to make money from the business you intend to start, and you will repay the loan.

The positive side is probably your friends won’t ask for a business plan before they give you the money, you will have to pay a smaller interest and they may even be indulgent if you are late with a payment. The negative side is that they may feel they own your business to some extent.

Every startup business needs some basic equipment to get going, along with some financing. If the business you are looking to start needs an office, furniture, cars, staff or special equipment, your money will certainly not be enough, and you will have to get financing from somewhere.

Home-based businesses can start with very little financing. If the business you are looking to start needs an office, furniture, cars, staff or special equipment, your money will certainly not be enough, and you will have to get financing from somewhere.


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