The two types of financing options for the company would be long-term loans and venture capital.
A long term loan is a loan that is more than three years. Most are between three and 10 years, and some run for as long as 20 years. Long-term loans are collateralized by a business's assets and typically require quarterly or monthly payments derived from profits or cash flow. These loans usually carry wording that limits the amount of additional financial commitments the business may take on including other debts but also dividends or principals' salaries, and they sometimes require that a certain amount of profit be set-aside to repay the loan. To qualify for a long term loan they would have to do a credit check to see if u has good enough credit. Character to see how u has managed other loans and what is your business experience. They will check for credit capacity which is a full credit analysis, including a detailed review of financial statements and personal finances to assess your ability to repay. You would also need collateral as a primary source of repayment. The sources of the money u are borrowing as to be larger than the amount u a borrowing. Capital assists that u own that can be turned into cash if need be. If u is confidence with the business plan and how accurate u is with the revenue and expense projections.
A venture capital is defined as funds that are generally invested in the form of equity or quasi-equity which rarely affords any guarantee. Investments may take the form of simple shareholder's equity (common or preferred shares), as well as options, warrants, convertible debentures and other vehicles. The structure of the investment generally depends on the company's needs and its stage of development, taking into account the objectives of ...