You are staring a new company and you need financing. Would you use stock or bonds or?

Answer 1

Stocks and bonds are regulated, so you can't use either without a lot of red tape you don't need when starting a new business. You can take out loans, or sell a portion of the ownership of your company, which is kind of like selling stock, but worse for you.

Answer 2

without sounding mean , take time to spell check communications? Staring a company is a complex business however making all communications typo free is always a good start.In the UK if its a small amount you may want to try the Princes Trust which gives grants to small business to get the unemployed into work, if larger then you are at the mercy of either the banks or if a BIG finance need then its the sharks of the city.

Answer 3

usually startup companies take the stock or bond route after a considerable time, when they have shown good operating results to the public, as bonds dont come cheap. as for stocks are concerned, a startup business doesnot have anything to show by the soundness of management or the profitability of the venture. as only with soundness of quality anyone will invest in your business either buying stocks or bonds.

some sort of liquidity, no matter how small, is required to show operating profits for atleast one balance sheet year to attract cheap outside finance as compared to banks.

assuming that you are on a strong footing and investors are there to take stock option in your business, you can go for it. but doing this will dilute your hold on the business which you may regret at a future point of time.

Answer 4

Neither... We started a new company 8 years ago and went to our local Credit Union for the money. I went with a plan on paper and walked out with all the money I needed.

aaaaaaaaaaagh life is good !