Secure Capital Investments LLC
Debt and Equity Solutions
How to raise capital: debt or equity?
In order to raise capital for the needs of your business, companies mainly have two types of financing options: equity financing and debt financing.
Equity Financing
It requires selling a portion of your company's equity in return for capital. The main advantage of equity financing is that there is no obligation to repay the money you acquired through it.
There are no payment debts or interest charges. All entrepreneurs want to run a successful business and provide the equity investors with good returns on their investment.
Debt Financing
Make this yours. Click here to edit the text and include any relevant information. It requires selling a portion of your company's equity in return for capital.
The main advantage of equity financing is that there is no obligation to repay the money you acquired through it.
How to raise funds to start a business?
We know you are wondering how to raise capital for your business, so we have compiled a list of some fundraising solutions that you can take advantage of.
Venture Capitalist
They are private equity investors who provide capital to companies with high growth potential in exchange for an equity stake. They are often a part of a larger venture capital company who has a board that votes regarding raising capital.
Microloans
Such loans are intended to help entrepreneurs who may have trouble getting financing from other sources. Generally the borrower is given the full loan amount by the lender and the borrower has to repay the principal amount plus the interest.
Bootstrapping
An entrepreneur is said to be bootstrapping when he/she starts a self-sustaining business, markets it, and grows it by using limited resources or money. The company is sustained without raising capital from external sources
Small Business Administration
The SBA is an autonomous U.S. government agency established to promote the economy by providing assistance to small businesses. Their aim is to provide support to entrepreneurs by raising capital for small businesses.
Banks & Lending Institutions
In order to raise funds for business, an entrepreneur can get a loan from a bank or go for alternative lending, also referred to as marketplace lending or P2P lending. Any loan that is secured outside of a traditional banking institution is alternative lending.
Crowdfunding
In order to raise funds for business, this approach is all about tapping into a wide network of people on crowdfunding websites and social media platforms that bring entrepreneurs and investors together.
Family & Friends
Anyone investing in your business will come with terms and conditions - ownership, stakes, interest rates, board member role, etc. Family and friends, on the other hand, want to help you.
Angel Investors
They are individuals who have high net worth. They invest their money in startups to get high returns or a stake in the business. Angel investors act individually, hence it is their sole decision if they want to invest or not.
