Business is a regular occupation that gives a handsome amount of profit on a regular basis. Business is a broad system that becomes successful after so many stages. The main stages of business are startup, growth or establishment, expansion, and renewal. All these stages of business cannot run without finance. In this article, you will get to know about finance and its different sources. Here I will give you the complete detail about the strategy of funding as well.
Finance or funding
The finance or funding is the money that helps in the startup and the growth of the business which makes it profitable. If you start a business by investing your major money then you stop spending money on the growth of the business then it will not proceed. Finance or funding is very important for the success of the business. There are so many funding sources available nowadays which give raise the new talent or promote them in the market. Major sources of finance are friends, family, banks, angel investors, crowdfunding, government grants, and funding companies. Here I will discuss the two major funding companies which are growth funding and growth capital.
Growth of business
When your business idea will convert into the action phase it will be known as the startup of business. After startup, the next phase is the growth of the business which is very important for its success. The growth of the business is the addition to your company or business. These additions can be of different types like expanding your business plan, adding new franchises, adding more customers, introducing the latest goods and services, and using the advanced technologies in your company or business. For the growth of the business you need finance but besides finance, you need to advertise your business on different social media platforms which will help you to enhance the quality of your business.
Growth funding
Growth funding is a platform that is built to give benefit people who want to start their own businesses. Growth funding is a very safe platform of funding that follows the official protocol for give and take of finance. The growth funding provides funds mostly for the better growth and expansion of business. As the name indicates growth funding is especially for the successful growth of a company or business. This is the best and finest option for those who are running their own business but are worried about finance for its growth. The team of growth funding directly contacts with their clients and no third-party intervention occurs in it. The growth funding will give finance according to the need of the company or a business.
Funding strategy of growth funding firm
The growth funding company will not give finance directly to the company or business. The team of growth funding will follow the legal procedure for give and take of finance.
- The interested candidates will directly contact the team of the growth funding company and then they will guide them through the complete procedure.
- The first step is writing of application which will be sent by the client to the team of growth funding.
- In the application, the complete subject will be given and the client will write the important details of their company.
- When the application will be received by the team of growth funding then they will send a response to the client in 3 to 4 business days.
- If the application will be approved by the team of growth funding then they will make an agreement and both parties will sign it.
- After the signing of the funding agreement, the team of growth funding will send money to the client in their official account within 48 hours.
Growth capital
As the name shows that capital is the initial funds of a business required for the startup and the growth of the business or company. Growth capital is a well-known funding resource that provides finance to every stage or kind of business. The growth capital provides funds for both levels of business whether it is smaller or larger. The growth capital is built and managed by a talented team that follows the legal and encrypted procedure for finance. The growth capital provides funds according to the need of the company and before giving finance the team of growth capital will check the complete previous record of the business or a company.
Eligibility criteria for funding
The funding companies will not give finance to every business or organization without verification. The criteria for funding for a business or company are the following.
- The interested company must be well organized.
- For taking finance the registration of a business or company is necessary.
- The profit ratio of a business or a company should be maximum.
- The growth rate of a business or company must be higher.
- The company has dedicated employees and managers.
- The company must have the potential for success.
- The company or business must have a strong plan for its expansion.
- The company or business has a strong customer base.
- The company or business has strong roots in the market.
- The company has the latest products and services.
Importance of funding firms
Most of the time people have the best ideas for business but they cannot implement them due to the deficiency of funds. For all those deserving people there are so many funding firms available nowadays which provides complete financial support for the startup and the growth of business or companies. If a company or business generates maximum profit but this money does not fulfill all the business needs then the owners need finance from any external sources. For this purpose, these funding firms are present which provides funds in the form of loans and investment on easy terms and conditions. In which both parties get maximum profit one can easily fulfill all their business needs and the other takes profit on their original money.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
