{"id":2102,"date":"2022-12-16T11:43:31","date_gmt":"2022-12-15T23:43:31","guid":{"rendered":"https:\/\/accelerateonline.blog\/?p=2102"},"modified":"2023-03-17T11:15:42","modified_gmt":"2023-03-16T23:15:42","slug":"your-alternative-funding-options","status":"publish","type":"post","link":"https:\/\/www.bdsaccountants.co.nz\/uncategorized\/your-alternative-funding-options","title":{"rendered":"Your alternative funding options"},"content":{"rendered":"<p>&nbsp;<\/p>\r\n\r\n<p>An outright stake sale might not be the best fit for your company. Here are three different paths you could take:<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Asset finance:<\/h4>\r\n\r\n\r\n\r\n<p>A loan to pay for a particular business asset, such as a vehicle or piece of machinery.<\/p>\r\n\r\n\r\n\r\n<p><strong>Pros<\/strong><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>Interest rates can be competitive if you are able to go through a mainstream bank, and you won\u2019t need a huge down payment.<\/li>\r\n\r\n\r\n\r\n<li>You may be able to own the asset outright at the end of the loan term, upgrade the asset, or return it.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>Cons<\/strong><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>Due to interest payments, it can be expensive to use asset finance rather than cash.<\/li>\r\n\r\n\r\n\r\n<li>The whole asset isn\u2019t tax deductible while you\u2019re paying for it \u2014 only the payments in the liabilities column on your balance sheet.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Crowdfunding:<\/h4>\r\n\r\n\r\n\r\n<p>Reward-based crowdfunding through websites such as <a href=\"https:\/\/www.kickstarter.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Kickstarter <\/a>or <a href=\"https:\/\/www.pledgeme.co.nz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pledgeme<\/a>.<\/p>\r\n\r\n\r\n\r\n<p><strong>Pros<\/strong><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>Can be useful for market validation.<\/li>\r\n\r\n\r\n\r\n<li>Appeals can be launched by early stage growth companies, and those working off prototypes.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>Cons<\/strong><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>Potential intellectual property concerns if an idea is made public.<\/li>\r\n\r\n\r\n\r\n<li>Compelling public offerings can be time-consuming.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Peer-to-peer lending:<\/h4>\r\n\r\n\r\n\r\n<p>Websites including <a href=\"https:\/\/lendingcrowd.co.nz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lending Crowd<\/a> link borrowers with people willing to lend small amounts. Peer-to-peer lending platforms are relatively new and you should do your research before considering this option, including checking the latest guidance on the <a href=\"https:\/\/www.fma.govt.nz\/business\/services\/peer-to-peer-lending-providers\/#:~:text=Peer-to-peer%20lending%20involves%20a%20person%20issuing%20a%20debt,entity%E2%80%99%20%28for%20example%2C%20an%20individual%20or%20a%20company%29.\" target=\"_blank\" rel=\"noreferrer noopener\">Financial Markets Authority website<\/a>.<\/p>\r\n\r\n\r\n\r\n<p><strong>Pros<\/strong><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>Lending process is less time-consuming than a bank loan, with interest rates occasionally lower.<\/li>\r\n\r\n\r\n\r\n<li>Loans are unsecured \u2014 you don\u2019t need to put up collateral.<\/li>\r\n\r\n\r\n\r\n<li>You are unlikely to be asked to give up equity in your business.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>Cons<\/strong><\/p>\r\n\r\n\r\n\r\n<ul>\r\n<li>Costs in addition to interest payments may apply, such as setup or platform fees<\/li>\r\n\r\n\r\n\r\n<li>High default interest rates (in addition to the agreed interest rates) likely apply<\/li>\r\n\r\n\r\n\r\n<li>Missed payments can affect your credit score.<\/li>\r\n\r\n\r\n\r\n<li>If you have a low credit rating, borrowing costs can be high.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>Like to talk through your options? Give us a call today.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; An outright stake sale might not be the best fit for your company. Here are three different paths you could take: Asset finance: A loan to pay for a particular business asset, such as a vehicle or piece of machinery. Pros Cons Crowdfunding: Reward-based crowdfunding through websites such as Kickstarter or Pledgeme. Pros Cons &hellip;<\/p>\n","protected":false},"author":2,"featured_media":3412,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[492,489,1],"tags":[545,546,547,548,505,549,550,551,552],"yst_prominent_words":[344,145,313,246,310],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v14.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Your alternative funding options - BDS Chartered Accountants<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bdsaccountants.co.nz\/uncategorized\/your-alternative-funding-options\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Your alternative funding options - BDS Chartered Accountants\" \/>\n<meta property=\"og:description\" content=\"&nbsp; An outright stake sale might not be the best fit for your company. 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