5 Mistakes to Avoid When Searching for Investment Capital

 

Look for investment capital – You could at any time have an incredible idea to create a china business or a revolutionary new product in the field of technology or commerce. But without capital, it would surely be just another idea. The cool thing is that everything can be solved if you have access to a large bundle of money saved for years as a reserve for the days of the storm.

Who has a business idea has two options: you can try to start the business with equity or start and expand the growth with investor capital. In the market there are angel investors and venture capitalists and many other sources of alternative capital for those seeking cash credit to capitalize on a business or company.

Tips for Finding Investment Capital

I am a big fan of people who create their startups using only their own resources, and it can be a viable option if you are extremely cautious when it comes to expenses if you have a little money seed and if your business concept will generate flow box immediately.

If you are not a bootstrap and are looking for investment capital then it is good to make some financial adjustments and you will definitely need financing and working capital. This support may come from a source or from various sources. While every business financing option has pros and cons, there are certain mistakes that you need to understand to avoid when looking for your startup capital. See below the five related errors.

1. Underestimate how much money you need for the business

 

Many entrepreneurs believe they will have a lower cost and more chances of securing financing if they ask the lender for a smaller amount of money, but this approach will not be good, it has two problems. First, most investors will see that you have underestimated how much it would take to make the business successful, and get away from it.

Even if you get secured financing, you will end up running out of money when you ask for less money than you really need. When you know how much money you will need to start your business, you are more likely to receive the capital to leverage your idea.

Most startups fail at this, so when looking for investment capital, you need to do everything possible to know exactly the right amount, and a little more to take a breath and survive.

2. Undo equity to start business

 

Investors often want an attractive share in exchange for their initial money, but giving up a very large percentage of the company at the outset can be disastrous.

In an ideal world, you would not even need to look for investment capital, you would have enough money for the first round of investments to become profitable, eliminating the need to raise more money again. Unfortunately, startups and fintechs face many challenges, obstacles and unforeseen events throughout the journey, unfortunately it is not possible to predict the future and have the best results possible.

That’s why it’s important not to overdo business participation, no entrepreneur starts this strenuous day with the goal of being a minority owner in his own company.

3. Obtain Personal Credit Card Debt

 

Many start-up founders of companies use their personal credit cards to finance their business, which is one of the most expensive financing options if you have a minimum of credit in the square.

Studies show that startup companies that rely heavily on credit card financing will typically fail. Leveraging debts using personal credit card puts the borrower in a very bad position, especially if the deal does not work out.

If you need to close the deal, you still will have a mountain of debt on your shoulders that must be returned to creditors on the card. If you delay payments, your credit score will be destroyed, your history stained and all your personal finances will be adversely impacted.

Note: ” Every entrepreneur thinks his idea is a winner because of optimism and confidence, but do not let it intoxicate your judgment, especially when it can potentially ruin your personal finances .”

 

4. Make advance loans with no consultation

 

With so many individuals seeking funding to start a business, it should not be surprising that there are criminals trying to take advantage of these business wishes. In advance rate loan scams is guaranteed that the financing or working capital no matter how bad the credit history, CNPJ with restriction in the SPC and Serasa, is released.

They ask for an initial fee – often saying it is to process the credit – and once you pay the fee, the loan will never happen. If you find one of these down payment rate scams, you can report it to the appropriate agencies.

 

5. Do not have a detailed cash flow analysis

 

 

Anyone who is about to release a loan for you or your business, whether it is a credit company or traditional financial institution, will want to know if you have full control over the cash flow and more importantly, how you plan to spend that money.

When looking for investment capital , developing a cash flow analysis will show potential investors that you have firm control from the operational to the administrative side of the business.

Also, a cash flow analysis is very difficult to fake, and this lets you know how good your great idea might be for what you want to invest.

 

Categories: Investment

Cash Mortgage: How the Mortgage Property Works Box

 

Is It Worth It to Mortgage Property Box ? Do you want to know what conditions and rules the bank has? Caixa is already known as one of the banks that offers good conditions and interest, but to make the mortgage requires care, as there are also risks. But when well thought out and calculated, there is no reason to distrust.

In mortgage, the client gives as collateral to their home or car in exchange for the loan, this is also known as refinancing. The Mortgage makes both the mortgage and the vehicle, but the conditions of assessments, payment and interest may vary, so it is recommended to do a search before requesting this financial product .

Real Estate Mortgage

If you want to guarantee your property in exchange for the loan , CEF offers the Real Estate Mobile Credit. This modality is aimed at the individual, in which he gives the property as collateral, to obtain the money. With this procedure you do not need to prove to the bank what you will do with the amount received, that is, you do what you want with it. Obvious, as long as it is used with caution! About the conditions:

  1. Loan of up to 60% of the value of your property
  2. Payment in up to 20 years (240 installments)
  3. Discounted installments in the account, ie, convenience when paying

 

Rules of Mortgage

 

 

To make a simulation to apply for Mortgage of Property Box , know the rules: you must have an account in the bank, the house must be removed and in your name. What’s more, it can not have financial backlogs, such as IPTU delays. If you are in compliance with the rules, go to an agency and present the documents as: RG / CPF, Proof of Marital Status, Proof and income and residence and the registration of the property.

Already to know how much interest you will pay, just doing a simulation, because this can vary greatly from the value of the property, payment options. Caixa usually presents good conditions and interest, compared to other financial institutions. To know more and know the regulation, click here:

 

How Auto Cash Advance Works

 

Now if you think about putting your car as collateral for the operation, the conditions are different compared to the house. In this mode known as Auto Contribution you can get that extra money you need so much. The conditions are these:

1-Release of up to 70% of the value of the car;

2-Payment in up to 48 months, ie, four years;

3- Payment is made by debit to account;

How Mortgage Cash Box Works

Some rules are very clear in the Cashier and the value of the loan may vary depending on the manufacture of the vehicle. For example: the vehicle with up to two years of manufacturing, the customer gets up to 70% of the value of the car as a loan. But the value varies if the vehicle has between 3 and 5 years of manufacturing, there is released up to 60% of the value of the car as a loan.

The documents requested to request this financial product are: CPF and RG, proof of Income and Residence, document of the vehicle in your name, personal documents of guarantors and / or guarantors, forms and the records of registration and documentation of the vehicle. To know more and know the regulation, click here.

 

Am I in debt? Is it Worth It to Make a Mortgage?

 

 

After being well acquainted with the rules and conditions of the real estate mortgage Box you must be wondering: is it really worth doing? Yes it is! But really if you need a lot of money, such as paying a very high debt, then yes it’s worth it. Just because you have a longer term to pay, and interest rates are lower.

But it is not worth doing home mortgage loan or car loan if you do not know how you will use this amount. In case, if you need a little money, it is recommended to make a personal loan. Even if the monthly interest rate is higher, if you can not afford it you will not risk losing your property or car.

In addition to Caixa, the other major banks also have mortgages in their portfolio of financial products

  • Bank of Brazil Property Mortgage
  • Mortgage of Property Banco Itau Unibanco
  • Bradesco Property Mortgage

So if you are in debt and do not know how to get out of the “red”, use this financial product with caution and planning. Be aware at the time of making, are fixed and monthly installments and in case you can not pay, then yes the bank can file an appeal to pawn the property or car. In any case, if you organize, do a research and then yes close the deal!

Categories: Investment