Carlos Hank Rhon - Business Investments

 Most of us don’t like risk and would be happy to live without it if we are in our comfort zone. But the truth is that risk has to be taken if one wishes to excel and grow faster. However, a number of times, we also need someone else to jump in the risk bandwagon by lending a financial hand. But sadly, here too, there is a glitch. 

Making someone invest in a business is not an easy task. To accomplish the same, one needs to convince the investor that the business is going to make money in the stipulated time. This could be done by revealing tempting details about business plan, future growth potential and minimal risk. It is important for the entrepreneur to contact only those who are looking forward to invest money, argues Carlos Hank Rhon. So, it could be said that business finance management is critical.

Business finance management can signify a giant question mark for people who want to venture in the entrepreneurial world, says Carlos Hank Rhon. As a result, many people think not just twice but a thousand times before they invest in a business. Most of the time, even people who have the capability to put up a really good business hesitate to do so, primarily because they do not recognize themselves as businessmen who are knowledgeable in business financing. What many aspiring businessmen do not know, is the fact that there are many simple business financing options available for their utilization. Some of the most popular choices are listed below:

Angel Networks

Angel Investors have gained popularity in the last decade, recalls Carlos Hank Rhon. These are the individuals or groups that are eager to invest in businesses that have just taken off. In exchange of convertible debt or ownership equity, angel investors provide capital to a start up at a higher rate of return. Due to high rate of return, entrepreneurs are usually hesitant to avail this option, states Carlos Hank Rhon.

Commercial Mortgages

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Putting up a business does not require you to maximize your expenses, explains Carlos Hank Rhon. Instead, proper business financing requires you to lessen your capital expenditure. This can be done by using commercial mortgages to finance your area of operation such as your office space, and/or other equipment pertinent in operating your business. This option allows you to have extra cash for other expense priorities or reserved funds for possible business ventures in the future. However, before opting for commercial mortgages, make sure that you have thoroughly examined various mortgage quotes available for you.

Asset Finance

This option suggests that you lease assets from a finance company, notes Carlos Hank Rhon. In this case, the leasing firm owns the properties of your business but you are allowed to “rent” the assets for business use. Aside from saving on capital expenditure, this option allows you to choose between renting new or used equipment, depending on which your business and your budget demands. Also, the availability of asset finance may prove to be beneficial when your company experiences fund inadequacy. Using this option, you can sell your assets to a finance company, and then lease the equipment for business use.

Venture Capital

If you think that you should allow yourself to explore other business ventures, if you feel that you can no longer handle the business alone, and/or if you feel that your business needs additional capital but you can no longer provide what it needs, consider venture capital. Venture Capital allows you to “cash” part of your business. This means that you sell part of your equity and control over your business in exchange for cash. Note that venture capital may open doors for business expansions as it introduces not only capital but additional help in business finance management.

Business Loans

If your company is running out of funds or if you are still on the process of starting a business, you can always run to the nearest bank and inquire about business loans. Aside from the bank however, you can look for other funding agencies. However, be sure that you have prepared a concise yet thorough and effective business proposition before you approach possible loan providers. Note that funding agencies will always ask for collateral according to Carlos Hank Rhon. Prior to your application for a business loan, be sure to have explored available business loan options in your area. Carefully examine the interest they demand, the type and amount of collateral they require, the payment terms available, the timeframe for the payment, and the amount you can loan.

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Hence, there are a number of options available with businessmen to choose from with different conditions in each case, argues Carlos Hank Rhon. Hence, one needs to decide whether passing some amount of control and equity in someone else-s hands is required or just commercial mortgage would do. This is where experience of a financial advisor like Carlos Hank Rhon comes handy.

Content Source:  Carlos Hank Rhon - Business Investments