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Own Finance Add to toolbox

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These types of finance usually involve either your own cash or cash you have generated from the business. 

The reasons why many entrepreneurs favour using finance they already have access to: 

  • Usually faster and easier to gain
  • You do not have to worry about paying it back to anyone at a later date and the possible costs associated with this
  • Because this is your money/money from your business you are more likely to be diligent with it and make better spending deicsions
  • You end having more control over how things are done in your business

However:

  • This sum of money may not be enough for your start up costs
  • If you use your personal savings and don’t make a return or lose the money in your business, you will no longer have savings to fall back on

There are 2 main types of Own Finance:

  1. Bootstrapping
  2. Working Capital