How to Finance Your New Business Venture
If you are starting a new business venture, there are many things that a Plymouth Meeting corporate law attorney can help you to do. Getting sound legal advice is a good way to make certain that your company gets off on the right foot. While there are myriad considerations for startups in making plans to move forward, one of the most important involves how to finance a new business venture.
You need to make smart choices about the different financing options available to you. Curley & Rothman, LLC can help. We will work with you to explore all of the different possible methods of financing your company. We can explain pros and cons of different approaches to financing and we can help you to carefully review any loan documents or other agreements that you sign to secure financing.
Give us a call as soon as you have decided to start a business so a Plymouth meeting corporate law attorney can get right to work on helping you make sure your company has the money you need.
Different Financing Options for New Business Ventures
The Small Business Administration provides details on some of the most common financing options for small businesses. The three examples that the SBA gives of popular financing options for startups include:
- Credit card: As many as 65 percent of small businesses use credit cards on a routine basis. Credit cards can be an easy method of getting startup financing, since you likely already have access to credit. However, this option presents significant risks. You could face substantial personal financial loss if your company is not successful and you get into credit card debt. High interest rates could also make it difficult for your business to make a profit if you finance the company with credit cards.
- Borrowing from friends and family: This option comes with the benefit of low or no interest, depending upon the agreement you make with your loved ones. However, it can also be a problematic method of financing your business. If you cannot pay your family back, you could find yourself with ruined relationships. Even if your business becomes a success, you and your family could end up disagreeing on how profits are shared or on how the loan will be repaid.
- Crowdfunding: Crowdfunding involves taking advantage of the Internet to connect with people who are interested in paying to fund your startup. There are different kinds of crowdfunding sites that work in different ways, but usually you will promise those who provide funding a discount on the product or a free product for donations of a certain size.
While these three options are popular, there are downsides to all of these approaches. You can also consider other methods of startup financing such as finding investors, seeking venture capital funding, or using loans from the bank or from the Small Business Administration. If you have a solid business idea and you make a professional business plan, it will be easier for you to find sources of finding to get your company started.
Choosing the Financing Option that is Right for You
A Plymouth Meeting corporate law attorney can provide you with help in exploring different financing options for your company and can assist you in pursuing the right option for you. It is important to understand all of the terms of any financing arrangement that you enter into, and an experienced attorney can assist you with this process. From reviewing bank documents to negotiating agreements with investors, an attorney provides invaluable advice in ensuring that your financing sets your company on the path to profitability.
Getting Help from a Plymouth Meeting Corporate Law Attorney
You cannot afford to make mistakes when it comes to securing financing for your company. You need to protect your investment, avoid burdensome loan terms which will make profitability more difficult, and ensure you create a stable financial structure for your business. You also need to make sure that starting a company does not jeopardize your personal financial security. A Plymouth Meeting corporate law attorney can help.
To find out more about options and to get assistance in negotiating financing deals or reviewing financial paperwork, reach out to an attorney today. Curley & Rothman, LLC has the experience necessary to help you find the best approach to financing business ventures. Give us a call at 610-834-8819 or contact us today to find out more about how our legal team can help your company to get off the ground, grow, or thrive.