Types of Investor Funding

There are many ways of funding a business, and investor-based fundraising is just one of the many options. Others include rewards-based fundraising, personal investments, friends and family, and good old-fashioned bootstrapping. Before deciding on going for funding from investors, it’s important for one to be sure that is the best route for them.

There are three basic types of investor funding, namely equity, loans and convertible debt, with each coming with its advantages and disadvantages, and each better fit for some situations than others. Determining the kind of investor-based fundraise that is right for you depends on a number of factors: the stage, size and industry of your business; your ideal time frame; the amount you are looking to raise and how you are planning to use it; and your goals for your company, both short-term and long.

Types of Investor Funding

Equity

Going for an equity would mean that you’d let people invest in your company in exchange for money. This way, in the future, you get to share the spoils of the company with the investors. This is one of the most popular methods of raising capital for entrepreneurs because it is attractive and does not come with a repayment schedule.

Loans

Loan are debt-based fundraising, and it also happens to be the easiest one of the three options when it comes to understanding. This is where one can borrow money now and pay it back later along with an established rate of interest. Debt is also the most common form of outside capital for new businesses. While angel investors and venture capitalists get all the big headlines for funding exciting companies, it’s the debt providers that are behind most of the investment dollars that go into the 99% of companies that aren’t splashed across magazine covers and business websites.

Convertible Debt

Convertible debt is basically the blending of debt and equity. Here, one can borrow money from investors with the understanding that the loan will either be repaid or turned into a share in the company at some point in time, after an additional round of fundraising, for instance, or once the business reaches a certain valuation.

GSI Exchange

Since we are talking about funding for businesses, we might as well talk about GSI Exchange, a company that has the perfect solution for investment needs, investing in precious metals. The demand for precious metals is always beats the supply and the state of the economy is never a problem.

What they offer:

  • Gold
  • Silver
  • IRA and Retirement

Three Reasons to Invest in Silver

When one thinks of precious metals, the first thing to hit their mind is gold. That is indeed one of the best investments that one can make, but there are silver and other precious metals that are just as good. The good thing about silver, is that it happens to be one of the most affordable metals on the market. This makes it easier for investors to access and buy more of it. Below are the reasons why people should invest in silver:

  1. A wide Array of Uses

It is one of the most used metals across the world, making it have a very high demand. It comes with different properties that can be used in many different ways, from jewelry and silverware, to electronics and telecommunications. Silver is used to make things that we use every day and as the demand from the solar, electronics and medical industries, there will always be a high demand for it.

  1. A Great Financial Hedge

Whenever there is inflation or even the mere mention of it, silver products tend to go up in price. Looking back to 1980 when inflation hit 14%, silver reached it’s all time high. And then there are the stock markets. Whenever they pass through a rough patch, investors prefer to put their funds in safer places that include silver and gold amongst other precious metals.

  1. Silver Retains its Intrinsic Value

Silver comes armed with properties that include malleability, corrosion resistance and electric conductivity. These rare characteristics make it a commodity that will maintain its value over time. In addition, silver has served as a currency for thousands of years, for an even longer period than gold has been used as a means of exchange.

Physical Possession IRA

The economy today is very unstable and unpredictable, and as a result, investors are looking for safe places to invest their funds. With Physical Possession IRA, a person has a legal way to help one control their retirement with a gold IRA or a silver IRA. With this program, one can purchase and store precious metals using their Gold IRA or Silver IRA.

Self-Directed IRA’s became legal in 1996, and the Physical Possession IRA falls under this. It is much easier to invest through this than through the traditional custodial accounts. Physical Possession IRA’s are not custodians.

The Physical Possession IRA Plan Includes:

  • Quick and Easy LLC set-up
  • Articles of Incorporation filed
  • EIN filing with the IRS
  • Transfer money to your Physical Possession IRA
  • Operating Guide and Binder Overnighted
  • Assistance setting up your LLC checking account
  • Free shipping of Precious Metals to your desired location

Well, there you have it. You now know how you can raise money for your business, and how you can invest it as the business succeeds. There is no limit to the amount of precious metals that you would like to invest in, and it all depends on what you’re willing to invest. Investing in precious metals has the advantage over other forms of investment due to the fact that your investment will never lose value, no matter what financial turmoil the money market is going through.