Obtaining the necessary security to be able to borrow from Banks when still in the Start-up or early trading stage of your business may be challenging. To help finance capital investment and some working capital requirements for your business, BOV; through a guarantee from the European Community’s Competitiveness and Innovation Framework Programme; are now offering Start-ups a business loan with the following details:
(i) loan of up to Eur25,000, representing 80% of the total investment;
(ii) loan term of between 1 and 5 years;
(iii) current interest rate of 4.8%;
(iv) possible repayment moratorium of up to 6 months;
(v) no extendable security required;
(vi) no early repayment fees;
(vii) no annual processing fees.
Contact us for more assistance on this scheme, with a strong business plan in hand, this could be all you need to help you start your new business.
Sources of Funding
Financing your start-up business can be challenging, there are many options one could choose from, and the cost and possible implications of each option need to be considered carefully, some of these are:
Funds from the same Founders (that is Self Funding), or from Family & Friends;
Funding through your Suppliers and obtaining lines of credit;
Bartering; Exchanging goods and services, instead of paying for these in cash;
Grants, Government funding, R&D projects, Educational institutions;
Business Incubation centre, the role of an incubation centre can vary from providing office space at reasonable rates, providing training and mentoring to the start-up business, help with networking and creating links with potential strategic partners, and lastly help with regulatory compliance.
A start-up business needs access to a variety of resources and to professional assistance. Initiatives such as Business First (Malta Enterprise) will help you get things right from the very early stages of your business.
As one of the chosen Service Providers to the Malta Enterprise "Business Advisory Scheme", we help support Start-up businesses with practical and useful tools and plans which will assist the entrepreneur from day 1 when starting to plan your new business.
Business Angels, they generally mentor the start-up team, they invest their own funds, and in many cases they have a track record of entrepreneurial ventures to back up their advice;
Crowd funding, there are essentially 4 types of crowd funding, these are through downright donations, loans (possibly interest bearing), pre-buying the end product (thereby collecting funds in advance for a product still to be created or launched), Equity (funds in exchange of a share in the business);
Venture capital, these are generally money managers, in that they invest other people's funds;
Strategic investors, you could commit to a major customer to cover the development costs and you could agree to have them place large orders in advance, which in turn could also help you obtain funding with a bank;
Banks, being the more traditional route, with business loans and overdraft facilities, most often with security over assets, either personal or business assets;
Private equity, sell as share of the business to a third party who shares your vision and wants to take a share of the risks and rewards.
At 500 Startups, start-up businesses all around the world can obtain mentoring, funding and support in their early stages. They focus on Design, Data and Distribution as the key areas for a start-up; get these right and you may have a fighting chance to succeed. Follow them for ideas, ways of doing things, or just inspiration.
Mashable.com: a great source of news and resources focusing on digital innovation, definitely worth following.
forbes.com/startups: we all heard of forbes, this is a page focused on startups and entrepreneurs.