10 types of financing for entrepreneurs that you should know

There are different forms of financing for entrepreneurs who wish to develop an innovative economic viability plan that meets their expectations when requesting a bank loan for the incorporation of companies in Colombia. Next, we will detail the different types of financing offered by the country’s credit system.

What is it?

Financing is one of the essential aspects when starting a business project, or when it is intended to grow once it is established. It is the way in which society obtains resources and / or money to carry out the different objectives it has in mind. To do this, it is essential to know in advance how much budget and to what extent it is needed to achieve certain ends. Lack of initial planning can spell the downfall of a business.

Different alternatives of financing for entrepreneurs

Advisory for entrepreneurs is essential for those who have truly innovative business ideas, but who do not have sufficient financial resources to materialize them. That is why they require the support of specialists to guide them on the viability of the project they intend to carry out. In response to this, a large number of private and public entities offer help to establish a company in Colombia.

In such a way that, to obtain the desired success, it is essential to know the different types of financing for entrepreneurs that appear in this area.

1. Credit policy. Considered as one of the operations in which the financial institution puts at your disposal as an entrepreneur a certain amount of money so that you have it according to your needs.
2. Loan. It is the most used type of financing for companies. It gives you the opportunity to request the amount of capital you need based on your needs and that you must return with interest on a monthly basis.
3. Commercial credit. It is also known as a lucrative discount, and it has to do with the postponement that companies offer to customers in a transaction for the sale of goods or services.
4. Renting and Leasing. Although Colombia is characterized by maintaining the property, there is also the opportunity to rent that will allow you greater savings.
5. Factoring. It consists of the anticipation of invoices pending collection, on which you assign the collection rights in exchange for interest.
6. Microcredit. It refers to personal loans of very low amount, intended to finance companies or ecological and social projects, and also do not need an endorsement.
7. Crowdfunding. It is nothing more than an online collective financing for a certain project through donations of an economic or other nature.
8. Crowdlending. It is a completely new method, used by companies to learn about online loans, establishing a direct connection with investors who apply this mechanism.
9. Business angel. It refers to individuals who have sufficient capital and who invest it in new companies, specifically in the early stages, in exchange for a shareholding.
10. Family and friends. Known as the three F. Friends, family and fools (FFF). Generally, it is the first investors who support the entrepreneur’s project.

Difficulty of entrepreneurs

In this sense, for entrepreneurs, not having enough capital poses one of the greatest challenges when starting the business of their dreams and there are many who do not know which entities to contact to obtain the necessary support. Currently, there are a large number of institutions that provide support and, if that were not enough, also resources, so it is not essential that the entrepreneur is hunting for competitions to get money.

Finally, entrepreneurs who need to start a project must take into consideration what financing they may have when planning.