Successfully Funding a Business Venture Free Essay Example, 1500 words

Usually, banks and other creditors are relatively reluctant to lend loans to startup businesses however all of our partners have sound experience and impressive professional credentials which would make the outlook of our future more viable. In case if we remain unable to raise loans through applications, personal properties of partners can be used as collaterals to raise loans. Where these loans are obtained for a longer period and provide suitable payback time to debtors, failure to pay back can lead to losing business as well as collaterals and incurring severe financial penalties with poor credit history affecting partners future credit status. Almost all of our members use credit cards that offer short-term credit services against very low-interest rates, annual fees and have several perks and benefits that can be helpful in business purchasing and traveling (Bagley Whynott, 1994; Fritzpack, 2013). This method also is fairly convenient due to readily available cash in hand and also less formal procedures in acquiring loans. However, this option provides a solution in the short-term only and hence can be used for operational expenses only with credit being paid off in the time limit specified by banks. We will write a custom essay sample on Successfully Funding a Business Venture or any topic specifically for you Only $17.96 $11.86/page Since we are intending to control expenditure in the beginning, partners in the event management firm would have to come up with personal liquidated assets. This method is expedient, convenient and has a lesser cost involved. Although the risks of losing one s personal assets cannot be ignored cost-benefit analysis makes this option more appropriate than others.