What are the main channels of entrepreneurial financing

There are five financing channels for entrepreneurial financing, including bank loans, personal business loans, commercial mortgages, pawning loans and partnerships.

1, bank loans

This is the first way people think of financing in the case of insufficient funding. At present, the bank is also expanding credit support for personal entrepreneurship, more and more types of loans, the conditions are also relaxing, entrepreneurs can choose the right one for themselves depending on the situation.

Bank loans include personal business loans, commercial mortgages and guaranteed loans.

2, pawn loans

Pawn is a form of financing in the form of transfer of ownership of physical goods as collateral to obtain temporary loans. The range of pawned goods includes: gold and silver jewelry, antiques and paintings, securities, household appliances, automobiles, clothing and other private property. Pawnbrokers generally in accordance with the collateral goods at the current market retail price of 50% -80% of the valuation, the expiration of the redemption can not be handled for the renewal of the pawn procedures.

Compared with bank loans, pawnbrokers have advantages that cannot be compared with bank loans.

First of all, pawnbrokers have almost zero credit requirements for their customers, and they only focus on whether the pawned goods are genuine. And while commercial banks generally only offer real estate mortgages, pawnbrokers can offer both movable and immovable property pledges.

Secondly, the starting point for pawning items at a pawnshop is low, and items that cost a thousand or a hundred dollars can be pawned. Contrary to banks, pawnbrokers pay more attention to individual customers and small and medium-sized enterprises.

Thirdly, compared with the complicated procedures and long approval cycle of bank loans, pawn loans are very simple and mostly available immediately, even if it is a real estate collateral, it is much more convenient than banks.

Fourth, when a customer borrows from a bank, the purpose of the loan cannot exceed the scope specified by the bank. Pawnbrokers, on the other hand, do not ask what the loan is for, and the borrowing is used very freely. Week after week, greatly improving the utilization of funds.

3, the government guarantees

Government policy support funds provided by the government to grasp the results of high-tech, then it may be worthwhile to strive for such policy support, once successful, the funding problem is naturally solved.

Additionally, the support of agricultural projects around the world is also greater, especially after the abolition of the food ordering task, everywhere will vigorously develop efficient agriculture, if you intend to go to the countryside to start their own business, you can apply for the "Agricultural Development Fund" support, some remote rural areas in order to accelerate the pace of development, there are to the developer of the land free of charge for a number of years and other concessions, are effective ways to save start-up capital.

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4, partnership

Partnership can not only effectively raise funds, but also give full play to the role of talent, and is conducive to the use of various resources and integration.

5, franchising

Franchising refers to the franchisor will own trademarks, trade names, products, patents, and proprietary technology, business model in the form of a contract granted to the franchisee to use, the franchisee according to the provisions of the contract, the franchisee unified business model under the business activities, and to pay the corresponding costs to the franchisee, the current stage of the chain management has become a The chain management has become a marketing model that leads the market trend.

Baidu Encyclopedia - Entrepreneurial Financing: Five Financing Methods