Being an entrepreneur is one of the most exciting roles in business today – but it’s safe to say that there are plenty of challenges.
There are a lot of big picture and day-to-day tasks you must take care of and experienced business owners will tell you that entrepreneurship is not for the faint-hearted.
Among the big picture tasks is raising funding to grow the company, rent premises and pay salaries. One of the least painful ways to do this is through non-dilutive funding or venture debt.
For those who don’t know, venture debt is a type of debt financing companies can apply for at specialized banks or lenders to fund things like purchasing new equipment or anything that promotes further growth of your startup.
What is non-dilutive funding?
If you are new to entrepreneurship, you may be a bit confused by the term non-dilutive funding. Sure, the term sounds complicated, but it’s not. The experts from arkkapital.com define non-dilutive funding as any investment that does not require you to relinquish all of the ownership of your company. Loans, grants, licensing, venture debts, royalty finance, vouchers, and tax credits are examples of non-dilutive options. Non-dilutive funding is very popular among entrepreneurs and people who own startup companies. If you are one of those people, you will be interested to see the benefits of non-dilutive funding for your company.
You don’t have to relinquish all of the ownership of your company
When you are taking regular credit at the bank, you usually must provide the bank with collateral. That means that the bank can take something of yours if you’re not able to pay back the money. Entrepreneurs, meanwhile, usually agree to relinquish some of the ownership of their company in order to get funding – this is known as venture capital. However, when it comes to non-dilutive loans or venture debts, entrepreneurs can keep more of the company ownership.
You can secure it easily
One of the best things when it comes to loans is the fact that you can secure them easily. A lot of banks now allow you to get a loan online. It doesn’t require much paperwork and it can be done in a day. If you’re having a day and you must secure money for your company, that can mean a lot. It saves you a lot of time and if you’re a new entrepreneur, you know how valuable time can be.
Final word
A business or a personal loan is one of the best and most convenient solutions for entrepreneurs. Make sure to do research and choose the bank that suits you best.