Investors always consider a small entrepreneur to be a risk. They want to know there is little chance for them to lose their money.
They are concerned about making a return on their investment and getting back their capital. So it is important to keep your credit record clean.
Investors will usually want you to put up between 10percent and 20 percent of the start-up capital. They will also expect you to have collateral, security such as property, investments or insurance policies that can be used to cover your loan if you cannot pay it back.
Money does not grow on trees. And if you do not have your own start-up funds it will be difficult to get finance from the bank, but it is possible.
Don't despair, because there are other options:
l Research shows that many businesses are financed with money borrowed from family or friends;
l Some businesses are financed by investments or a loan from a partner;
l And some are financed by loans from a bank or a micro-finance institution.