How to Get Your Business Funded

Business Angel, Dollar, Money, Investor

Contrary to popular belief, business plans don’t generate business financing. True, there are lots of kinds of financing options that need a business plan, but nobody invests in a business plan.

Investors need a business plan as a document that communicates ideas and information, but they invest in a company, in a product, and in people.

Small business financing myths:
Venture capital is a growing opportunity for funding businesses. Actually, venture capital financing is very rare. I’ll explain more later, but assume that only a very few high-growth programs with time-management teams are venture opportunities.

Bank loans are the most likely option for financing a new company. Actually, banks do not finance business start-ups. Banks are not supposed to invest depositors’ money in new companies.

Business plans sell investors. Actually, they don’t well-written and persuasive business plan (and pitch) can sell investors on your business idea, but you’re also going to have convince those investors that you’re worth investing in. When it comes to investment, it’s as much about whether you’re the right person to conduct your business as it is about the viability of your business idea.

I am not saying you shouldn’t have a business strategy. You should. Your business plan is an essential piece of the funding puzzle, explaining exactly how much cash you need, and where it’s going to go, and how long it will take you to make it back. Everyone you talk to will expect to see your business plan.

But, depending on the type of business you have and what your market chances are, you should tailor your funding search and your strategy. Don’t waste your time searching for the wrong kind of financing.

Where to look for cash
The process of searching for cash must match the requirements of the corporation. Where you look for money, and how you look for money, depends on your company and the kind of money you need. There is an enormous difference, for instance, between a high-growth internet-related company searching for second-round venture capital and a local retail store looking to fund a second location.

In the subsequent sections of this article, I will talk more specifically about different types of investment and financing available, to help you get your business funded.

1. Venture capital

The business of venture capital is often misunderstood. People talk about venture capitalists as sharks-because of the supposedly predatory business practices, or sheep-because they supposedly think as a flock, all needing the very same sorts of deals.

This is not the case. The venture capital business is merely that-a business. The people we call venture capitalists are business people who are charged with investing other people’s money. They have a professional responsibility to reduce risk as far as possible. They shouldn’t take more risk than is absolutely necessary to produce the risk/return ratios that the sources of their capital ask of them.

Venture capital should not be thought of as a source of funding for any but a very few exceptional startup businesses. Venture capital can not afford to invest in startups unless there is a rare combination of product opportunity, market opportunity, and proven management. A venture capital investment should have a reasonable chance of creating a tenfold increase in company value within three decades. It needs to concentrate on newer products and markets that can reasonably project increasing sales by huge multiples within a brief period of time. It needs to work with proven managers who have dealt with successful start-ups previously.

If you are a potential venture capital investment, you probably know it already. You have management team members who’ve been through that already. You may convince yourself and a room full of smart people, your company can grow ten times over in 3 years.

If you have to ask whether your new company is a possible venture capital opportunity, it likely isn’t.

If you are looking for names and addresses of venture capitalists, start with the internet.

This organization includes most of the California venture capitalists based in Menlo Park, CA, which is the headquarters of an remarkable percentage of the country’s venture capital companies.
Pratt’s Guide to Venture Capital Resources is an yearly directory available online or in print format.

2.

Venture capital isn’t the only source of investment for startup companies or small businesses. Many companies are financed by smaller investors in what’s known as”private placement.” By way of instance, in certain regions there are groups of potential investors who meet occasionally to hear proposals. Additionally, there are wealthy individuals who occasionally invest in new businesses. Many entrepreneurs turn to friends and family for investment.

Grow Your Business

Entrepreneur Startup Start-Up Man Planning

There are times that businesses face difficulties with their finances leading to bad credit. A poor credit history restricts your chances of acceptance for equipment finance regardless if the equipment will help improve company profits.

Standard lending institutions such as banks may deny you the loan you need. However, there are specialized loan companies who can look beyond your bad credit. These lending institutions can offer you a second chance at availing the equipment you will need to grow your business by providing bad credit equipment finance.

Equipment Financing is short-term loans (about 3-5 years) extended to businesses specifically to buy the equipment required for its operations. Equipment financing is a security loan, meaning the equipment you bought could be repossessed if payments go into default. Since the loan is discharged with a security, lending companies see it as low risk and may offer a lower interest rate compared to a standard loan.

To qualify for an equipment loan, an individual must have a credit score of 600, been in business for at least 11 months, and create approximately $100,000 in earnings. For those who have a poor credit but meet the other two requirements, there is still a chance for you to avail of a fund. It really depends upon the lender’s appraisal of your financial situation.

Equipment financing is an alternative for startup and tiny businesses for growth and development especially for those who don’t have sufficient capital to fund their purchase. And in case you’ve got a poor to bad credit score, being granted an equipment financing provides you the chance to improve your credit rating.

How to improve your chances of approval for equipment financing despite bad credit

You can improve your chances of an approval for equipment fund. By making ways to improve your credit standing and strengthen your application to lenders, there’s a fair possibility that loan companies will consider your loan application. Below are ways to strengthen your application.

1. Lenders can consider your application if you are applying with someone that has a better credit standing. The cosigner can provide security for the loan considering that the consignor has equivalent obligations as the borrower.

2. Present other assets for security. In case you have other resources such as other kinds of equipment or even real estate property, you can offer it as a security. It strengthens your application to secure the loan.

3. Bigger down payments. Do you have enough money to put down payment to significantly decrease your total loan amount?

4. Proof to show company is growing strong. Provide documents like bank statements showing a good revenue for the past months. Lenders like to see a growing stable company, so it’s essential to give income statements and other documents to support your claim.

5. Seek expert help. With bad credit, lenders will provide you a hard time acquiring a loan. But with proper help from loan specialists, you can increase your chance of getting the perfect lender who can look beyond your bad credit.

Bad Credit Equipment Finance is a type of business loan that offers funding for equipment despite of bad credit history. You’ll have a better chance of getting an approval when you seek help from loan experts who have years of experience assisting businesses get the ideal loan for their needs.

Facial Biometrics

Biometrics Eye Security Iris Scanner Iris

Privacy and security are a really important facet of any business. Every business owner wants their premises as safe and secure as possible without any unwanted visitors roaming around the premises. Facial Recognition Technology has been widely used for different functions and it’s about time people come to find out more about this wizardry.

Facial Biometrics is a technology capable of identifying someone by scanning and reading certain facial features. Facial Recognition Technology has come a long way and now have various applications in mobile platforms, robotics as well as matter of national security.

Different Techniques Used for Facial Recognition

Traditionally there are two different ways which are used for facial recognition.

1. In this system, the algorithm analyzes the facial features like relative position, size, the shape of nose, ears, cheeks, lips etc..

2. Another way is to use a compressed probe image which contains all the required data to recognize the face of a certain person. The probe image is compared to the accessible face data to recognize the compulsory face out of the data pool.

3D Recognition

In 3-dimensional face recognition, 3D sensors are used to record the facial features with more details such as the structure of the contour, spots, contour of the eye socket, chin, nose etc.. The additional benefit of 3D face recognition is that it is not determined by the light like the other methods.

In this technique, the facial features can be scanned in different lighting and a broad selection of viewing angles. This method drastically increases the precision in the process making it more reliable and usable in different conditions.

There are some other ways used for facial recognition like:

Skin Texture Analysis

Thermal Cameras

Combination of different techniques (3D Face Recognition + Skin Texture Analysis)

Applications of Face Biometrics

Mobile Applications

There are lots of mobile apps which use face recognition for different purposes. Snapchat uses facial recognition to add a new filter which may change the way you look. Similarly, there are lots of such mobile programs which utilize this technique to improve their services.

Face ID

Unlocking your phone with your face is nothing new but Apple has completely changed the game with their exact Face ID feature.

Security Services

Various Police and National Security Agencies across the globe use facial recognition systems to track down criminals and identify suspects.

Biometric Attendance

In large companies and government agencies, various biometric cameras and machines are utilized to automatically indicate the presence of employees or any certain individual.