As part of the Dynamic Business “Let’s Talk” series, Sierra Legal Senior Associate Kenneth Gitahi shares his thoughts on raising capital - how do you know which option is best for you:

“Capital raising options for businesses include family loans, government grants, crowd-sourced funding, commercial loans, venture capital funding, and selling a share of the business (i.e. through private equity investment or an IPO).

The best option will depend on your business and funding requirements and may be influenced by factors such as the speed with which funding is required, cash flow of the business, the maturity of the business, the amount of funding required, the cost of funding, the flexibility with which the funds can be used, and the appetite for increased regulatory burdens that may apply to some forms of capital raising.

For example, borrowing from a family member can mean that the payment arrangements and use of funds are flexible and the money can be available quickly, whereas, approval for a commercial loan can take longer as a bank undertakes due diligence and commercial interest rates may be high.  In addition, the use of funds may be restricted to a specific project.

Seeking independent professional advice can help to determine the best capital raising option for your business.”

Read more of the discussion from business owners and entrepreneurs here - https://dynamicbusiness.com.au/featured/lets-talk-raising-capital.html