Borrowing money for starting up

Most start-ups are financed in one of three ways. By using your own money (self-financing), by borrowing the money (debt-financing) or by equity-financing (where a person or an equity company takes a share of your future profits in return for investing in your business).
As far as borrowing money is concerned, you will need to convince the providers that you are a good risk. They need to know that your business is based on a firm foundation and has every chance of success.
Lending policies vary from one organization to another, however, there are a number of common factors they will all be looking at:
You personally. Your background, training, qualifications, experience and financial commitment to the business.
Why you need the money. What it’s for and how the business will benefit.
Your ability to repay. Does your cash flow forecast suggest that you can afford the repayments? Do you have an alternative repayment source?
How robust your plans are. They’ll want to see your business plan.
Security. Part of the assessment involves working out the risk involved in lending you money. You will be asked to give some sort of security. This gives the lender the protection of a second source of repayment.   
 
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