Many people dream of opening a yogurt shop or their own custom car repairs? Some people want to take their golf hobby and turn it into a business. One thing in common is nearly every business needs cash to get started. A great idea for the next best frying pan needs financing. Funding to patent and develop the product will need to come from somewhere.
If you enjoy working with entrepreneurs then the field of creative financing may be a sound career choice. Startups go to the bank for loans. Logically banks have money and if you need money it is an honest start. However, because of the risk involved with new small businesses, banks are the least likely place to support a new good idea.
A finance expert can help look at creative financing. Looking outside the box for all the places that money can come from for a new business venture. Coming up with business ideas is good but then an owner needs to go to the finance team to discover a source for the financing.
With the onslaught of the internet, the power to tap what has become crowd funding has become popular. Through emails and lots of friends and associates who have lots of friends you can get people who believe in your business. They give one dollar to thousands of dollars. It started more with non-profits and races for causes. Now it can provide money for inventors with new product ideas. Caution; it doesn’t work for everyone or for every product.
Selling a product or products can require a large cash outlay to purchase products to have on hand for resale. Having to turn down a large order because of lack of inventory can slow business growth. As a creative financier you can become familiar with purchase order financing. It allows an investor or maybe a bank to send the monies to the supplier. The collateral is the goods intended for sale. The sales transaction can go through. The cash flow can bolster a startup off the ground.
You can point your entrepreneur to the first place they should go for financing, their own pockets. Saving money for a startup shows good business sense to potential investors. If an owner isn’t willing to risk their own cash it is hard to ask someone else to put faith in your great ideas.
Sources cited: https://www.sba.com