Reasons You Should Look into Startup Finance Business Essay (Essay Sample)

7 reasons you should look into start up finance
More than 60% of startup entrepreneurs seek start up finance at one stage of their business growth or the other. Most of these do seek funding from external sources. You need to look into start up funding for several reasons, these may be loans for the business working capital, to hire more staff, procure new machinery or to reduce your monthly costs. The following are the commonest reasons why startup owners look into a start up financing;
Working Capital
The primary reason you should consider a start up finance is that it can serve as your working capital. Having sufficient working capital is an important aspect of a startup’s financial health. Not having sufficient working capital can hamper the growth of your business in the future. This is the reason why many startup owners look for external funding to support their future growth ambitions.
A loan, for instance, will cover up for some short-term funding requirements while giving your business the funds it needs to grow. External funding can also bridge the gap between supplier payments and customer orders. According to the UK 2015 Business Bank’s Funding Survey. Working capital is the biggest reason why startup owners seek finance externally. Seasonal business can benefit most through working capital funding, especially during the quiet periods to cover basic business expenses.