There are very few people in the world who can genuinely claim to have as much money as they need. For most people, there is always the need to earn more as there is still plenty of months left at the end of the money. It means that dreams are often left unfulfilled or that opportunities can go begging because of a lack of savings or an inability to get funding. But with a bit of planning and foresight funding is often less of a problem than people realize. With this in mind, here are a few angles to consider when trying to make yourself a little more financially liquid.
Know your purpose
Banks and financial institutions are always keen to offer money to people if they feel that there is enough security in the deal. They shape and tailor all sorts of purpose-specific packages. There are personal loans for students or car loans or bridging finance or home loans or revolving lines of credit. The list is almost endless. The key is to know who you are and what you need cash for. Then go and meet with the bank and talk things through. Explain your case and your needs and a financial advisor will come up with an option for you. But remember to shop around, don’t just speak to one bank, it is a competitive industry and you need to get multiple quotes to ensure that you get the best interest rates and payment terms.
If you have a great business idea and you think you are onto something if you can just get some funding, you might want to look at reaching out to a venture capitalist or angel investor. These are people or institutions who specialise in high risk and high reward type projects. If they like your idea they will fund it, but they will also want to see a significant return on their investment, and they may well seek equity in your business. This is not necessarily a bad thing, but it is important to know – nobody is simply going to give you money out of the goodness of their hearts.
This is a relatively new and exciting option to explore and there are many models to explore. Some platforms will simply allow for you to pitch a case and to raise money to make that become a reality. There are zero expectations or ownership or shares or returns on investment. Others will broker deals that see the investors owning a share of a new or existing business . Whatever the case, the internet is a great place to crowdsource capital and to reach vast networks of potentially interested investors.
Manage your record
One of the key elements of getting finance is to make sure that you have a good credit record. This is where planning and long-term financial management come into play. If you have not managed your finances well in the past, then there will be a record of this, and institutions or lenders will see making a loan to you as a high risk. So do your best to manage your resources well because you don’t want your past mistakes to catch up with you right when you need a loan the most.