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 (EMAILWIRE.COM, May 06, 2013 ) Costa Mesa, CA -- Asset One Funding recently launched a new info-graphic on startup venture financing. With true insight and gripping details, this informative piece is a must for anyone wishing to start a new business. While overhead costs are part of any new commercial endeavor, the infographic also stresses the importance of debt in financing your business. According to Merriam-Webster, “debt is defined as the common-law action for the recovery of money held to be due.”
According to the infographic, debt has advantages over selling equity in a company to investors. Once the debt is repaid in full, one is sure to reap the rewards of hard work. Before starting any potentially lucrative business, one should weigh their options and choices very carefully. This includes debt investment strategies, which have been proven to work better than equity based solutions.
The infographic clearly highlights the top 10 ways debt can subsidize a new business. This includes credit cards, which remain a popular financing option for most startup firms and companies. In fact, over 40% of business owners have used credit cards to finance their entities. Since no collateral is required, countless potential business owners can take advantage of credit cards. There are, however, a few drawbacks in using these cards. For one, the amount of money you can utilize depends on your credit standing and income. Therefore, good credit histories and strong income can secure larger credit card lines for potential investors.
When starting a new business, a number of people also tap into their 401K funds for financing. This falls under the rollovers category, which basically utilizes retirement money to finance new commercial startups and companies. In fact, over 60% of new franchises are financed by rollover money each year. This includes 10,000 new businesses that were put into fruition over the years. There are several benefits of using rollover money as well. This includes the ability to secure a continuous flow of money, without paying interest or making monthly payments. When using rollover money, there is simply no payback timetable or window.
The infographic also touches on trade credits, along with equipment financing and business loans options. It also highlights home equity lines or credit, as well as Peer 2 Peer (P2P) loans. About 4% of startup ventures rely on P2P loans annually. These loans are usually secures via P2P sites online. While these sites offer multiple lending platforms and options, they do entail stringent rules and credit checking tools. They also include higher closing costs and even higher APYS, which results in a more expensive financing option for new businesses. P2P loans, however, do provide faster access to funds for customers.
The infographic also discusses contract financing, bootstrapping, and borrowing from friends or loved ones. Opening a new business is never easy. In fact, more than half of all new businesses go under within the first six months.
Asset One Funding:
For expert tips and advice on venture financing options, simply visit Asset One Funding today. They offer a range of options and capital-lending methods that will try achieve your desired results. See their recently released infographic here - http://www.weclozloans.com/inforgraph-using-debt-to-finance-startups/.
Asset One Funding
Customer Service
866-441-0186
news@postpressrelease.com 
Source: EmailWire.com
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