Wednesday, November 20, 2019
Research Project Essay Example | Topics and Well Written Essays - 2000 words - 1
Research Project - Essay Example The new start up retail organization is seeking for required funds from several effective funding bodies in order to start the new business in the potential industry. There are two major funding options for the organization, such as lending capital from renowned commercial banks and borrowing funds from the angel investors. However, it is important for the organization to develop an effective business plan so that the funding bodies can believe that the particular business has huge potentiality. The new kitchen appliances retail organization can propose different financial institutions and commercial banks in order to borrow the start up business capital. It is true that the commercial banks and several financial institutions generally offer both secured and unsecured landings for business start up in order to meet the working capital requirement. The commercial banks usually offer unsecured loans to the start up business organizations depending upon the managementââ¬â¢s judgement (Leach and Melicher, 2011, p.110). On the other hand, the banks generally offer the secured loans against the organizationsââ¬â¢ deposited collaterals and securities. However, the unsecured loans usually do not demand any kind of collateral or security from the start up business organizations against the lending of loans as start up business capital. The commercial banks or different financial institutions usually provide unsecured loans to the business organizations in the form of corporate credits and overdrafts. Several angel investors are also can be considered as the important funding bodies for the start up kitchen appliances Retail Company. The angel investors are also considered as informal investors or business angels. These angel investors used to have vast experience about several business forms. These investors generally belong to the wealthy and rich businessman segments. The rich and affluent angel investors or the business angel generally provide the
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