Financing & Loans

Funding for investment

Funding_investment

Are you searching for additional funds for your investments because you are tight in cash flow? Are you met with an investment opportunity that you think is worth injecting in but your current financial standings do not allow you to manoeuvre much?

There are many ways you can go around with finding that additional money but you need to first identify what is required. In most cases, investment funding would come about when you are faced in a situation where you need money:

  1. to invest into a business that you are currently operating
  2. to invest into a whole new business
  3. to invest in different platforms like property, unit trusts or money markets

What should you look for?

What makes investment funding different from other forms of funding is that you are looking for returns. This means that you are approaching this very differently as compared to say; personal loans or a vehicle loan where the returns can be very standardized and periodical. In investment funding, you will need to come with a proposal which must:

  1. be concrete and reliable
  2. have good returns
  3. promising and almost guaranteed

Who to ask for investment funding?

There are several parties that you can seek out for investment funding or loans. Ensure that you have done your homework before approaching them. This will usually involve the documentation of the investments you intend to enter into. On top of that, you need to identify what type of returns that you expect to get and what are the risks involved.

That would give the moneylender the confidence that they will get their money back in due time. In some cases, certain moneylenders would want to be part of the shareholder if they deem that the investment is a good and sound one. Among those that you can approach for this type of funding include:

  1. Banks – This is perhaps the most popular parties to ask. In most cases, banks would have some form of loan that will help you get the funding you need for your investment. It could come in the form of a personal loan or one which is related to their financial products.
  2. Moneylenders – this is where you need to be careful. Seek only registered moneylenders who are legitimate. Once you have shortlisted who you want to borrow from, you need to approach them and talk about why you want to borrow the funds for. Always read the clauses and terms and conditions before signing anything
  3. Venture Capitalists – VCs are those who like to put their money into money making businesses or those that they think has the potential of bringing in good returns. They usually like to be sleeping partners and just hold shares in your investment. If your investment brings the returns, then they will consequently make the money as well. You need to do your homework prior to speaking to them so that they are confident of where their money is going.