Latest posts

Top 4 Sources For Raising Capital For A Startup Business

Are you about to start a small company? Is it so that you have a great idea for starting a lucrative venture in a small market? In both situations, you need capital to get started. Until the idea phase, you are expected to invest by yourself, as minimal capital is needed to abstract from an idea, make an initial plan and establish a new official body.

The need of fundraising is felt for product development, testing, patents, sales and marketing. The capital required for these phases is likely to be significant. So, from where should you raise the capital? Well, there are several sources to consider for the same.

Buddies and Relatives

If you are confident that your idea is going to be lucrative, then only you can instill trust in your relatives and friends. It is only then that they will be ready to invest in your business.

Once they are willing to lend you, ensure you give them a profitable deal and get them to sign the standard documents revealing the expected terms, conditions, risks and benefits. After all, they should not feel being cheated in the end.

Seed Investors

Also known as private or angel investors, they could be promising sources for startups. They are individual investors apart from your friends and relatives and invest in a new small business. They do so by using their spare cash against a higher rate of return than obtained by a more customary investment.

It is like equity financing wherein the lender gives funds and grabs an equity position. This kind of financing is chosen commonly, as startups lack enough cash or collateral for getting bad credit loans. There are investors who invest significant cash by networking with other co-investors, who are known as super angels.

Seed investors can help you beyond giving capital. They can give insights into the new product or company, which can guide you in the right direction. You can assume that these investors only invest in ventures they comprehend or care about.

To find them, you simply need to build your network. For example, if your idea is related to a new baby-care product, you can easily get investors such as mothers as housewives in your area and ambitious women entrepreneurs running a small company. 

These investors truly comprehend your new baby-care product. However, ensure that you reveal the risks for their investment and the attractive opportunities on offer.

Business Plan Competitions

Many organisations such as universities and angel investors conduct business plan competitions the winners of which get a cash prize. So, if you can make good business plans, this can be the ideal source for you.

Although the award is significant, it could be still less for initiating a new startup. So, you may feel it to be a less reliable source. Still, it has its secondary benefits in the sense that you experience the process of improving your business plans and honing your skills. This will then help you to get some real cash.

Strategic Alliances

These are strategic investors who can invest much money without bothering about your geographical location and with an aim to add value to your venture beyond investments. These are basically the operating companies who are willing to invest if you have a compelling idea that can give them operating revenue instead of only an ROI. 

However, on the flip side, it can take longer for them to invest, as they are big agencies that usually fear making loss-inducing decisions.

Conclusion

So, which of these investors would you prefer for your next business venture? You should choose them as per your due diligence. 

By Franco 0 Comments

5 Easy Ways To Bring Down Credit Card Debt

Nobody likes credit card debt. However, it is a common condition that many card owners face. So, are you also facing the same? Well, here are the top 5 ways for you to get rid of this debt completely.

Learn Frugal Living

The best way to save more so that you can clear your credit card debt faster is to switch to frugal living for some time. Start by stopping additional shopping of unnecessary items such as cosmetics and premium clothing.

Stop impulsive shopping, which is usually the result of temptation. Do not buy anything immediately just because you liked it or it is unique. Think at this point of time whether it is truly necessary to buy that item or not. That item may be new or attractive but it may not be fulfilling your needs; it may be something that you want, not something that you need.

Act as a shrewd shopper who knows what to buy from which store and at the best price. This is where you would use coupons and grab deals.

Strategically Pay Off

Do not just start paying off your debt just because you need to clear the dues. Rather, pay it off with a good plan of action such that you do not have to repent for any unexpected action later. This plan should have strict rules of your spending and savings within the rim of a stringent budget.

The goal of this plan is to pay off maximum debt possible for each credit card. You clear the debt of the first card and then clear the dues of the next card. You may choose to bring down the debt having a higher interest rate to save more or opt to clear the small dues first.

Owe Fewer Credit Cards

Bringing down the number of credit cards is a primary step to be taken for clearing or reducing the credit card debt. Although each one of us has different requirements, there is truly no need of having several credit cards that allure you to spend needlessly.

While the needs differ, it is recommended to have not more than three credit cards. Further, you should know how to use them in the right way. Haphazard use can have negative fiscal repercussions.

If you can keep your spending under control, you can have up to three cards with one being always in a locker safe at home. However, you should not use this card for handling an emergency; for that, you need to have an emergency fund.

Create a Buffer or an Emergency Fund

This is another major tip to consider if you do not want to increase the debt while trying to reduce it or fall into the trap of debt again. While clearing the pending debt, if something unexpected occurs, you at least do not have to use the credit card for payment. The buffer fund will help you at this point.

For creating this fund, consider contributing a little bit from your monthly paycheck. Alternatively, you can also consider opening a savings account.

Consolidate

This is another effective way to bring down the credit card debt. Consolidating it into a loan of a low rate of interest can save significantly for you, as you will end up paying a low interest amount.

While it is nice to do so, you need to comprehend the terms and conditions, including those for the fees. Doing so will ensure that will end up saving on interest payments.

Well, consolidating does not mean that you now no longer need to manage your finances or curb expenses.

Conclusion

So, which one seems to be the best way for you? Well, it is likely to be more than one!

By Franco 0 Comments

A Health Insurance Policy Or A Medical Loan: Which Is More Beneficial?

Medical loans and health insurance policies are popular financial sources meant for fulfilling medical needs. As the purpose does not differ, you may wonder: “Which one is better for me?” Well, to decide, know that both have distinct importance and are fairly different from each other.

Once the differences are identified, it will be easy to decide which one to choose and when. So, let’s explore the differences in this post.

Health Insurance versus Medical Loan: Meaning

Health insurance is a type of insurance product that covers the clinical costs of the one who is insured. According to the type of insurance policy and its terms, you first pay the medical bill and then obtain the reimbursement or the insurance company directly pays to the clinic or hospital.

On the other hand, medical loans are personal loans that are not secured. They are meant to pay medical arrears, sponsor your surgical procedures and other medical costs that a health insurance policy would typically not cover.

Health Insurance versus Medical Loan: Processing Time

It is easy to apply for a medical loan, as there is no lengthy procedure involved. The approval process is also faster than that of an insurance policy. Thus, disbursement is also quicker. However, in case of a medical insurance policy, you usually need to wait for a considerable period.

Health Insurance versus Medical Loan: Coverage

A medical loan usually covers a variety of surgical procedures related to dental, cosmetic and fertility. On the other hand, a health insurance policy will usually not cover them. It will not cover the procedures that are therapeutically unnecessary.

In short, the policy will reimburse only for the procedures or expenses covered, which will be as per the predetermined terms and conditions. For other medical expenses, you need to pay from your pocket.

Nevertheless, the loan you get is useful for paying all medical bills and debts, such as hospital room charges and doctor’s fees. There are no restrictions or confinements in case of using or getting a medical loan.

Health Insurance versus Medical Loan: Medical History and Age Criteria

In case of a health insurance policy, the eligibility criteria are stringent. It is only given to those who are healthy as well as have trivial to no medical history.

If you have survived cancer or undergone some surgery in the past, the insurance company considers you as an applicant with a significant degree of risk. In this case, the probability of disapproving the insurance application is high.

Even age is considered for calculating the premium. The greater the age, the higher is the premium.

However, there are no such restrictions in case of medical loans. You can avail of it even if you are a cancer survivor or have undergone some surgery in the past.

Health Insurance versus Medical Loan: Interest Rates

Medical loans are available at reasonable interest rates. You can even easily grab adaptable repayment options. However, an insurance policy usually will carry a high premium amount.

Health Insurance versus Medical Loan: Applicability

A medical loan is convenient only for paying your medical expenses or protecting the health of your family. In case of the latter, an emergency loan could be your reliable financial option. A medical loan is also preferable as a backup fund.

On the other hand, a health insurance policy is like taking a safety measure. You may pay the premium for years and end up without claiming even once. This is when you feel that all premiums have been wasted despite getting relief from tax.

Further, if your assured sum is claimed in a year, you cannot claim for any other medical expenses that may surface in the same year.

Conclusion Although a medical loan seems better, you can choose from the two as per your requirements.  

By Franco 0 Comments
Send a Message
This website uses cookies and asks your personal data to enhance your browsing experience.
Ok, I agree Privacy Policy