Individuals or teams who want to start a new business can find it very difficult to get any finance, particularly if they are starting a business from scratch and they will not be able to make any income from the business for some time.
The classical methods for financing such a new business in the tech world is to use a venture capitalist, as these people can supply a large amount of funding which means that the new business start-up can progress very quickly in developing their product and operations and getting to market. The disadvantage is that venture capitalist generally take a very large cut of any profits that arrived down the track, and in the long term the new business owner may decide that the venture capitalist is just going to be too expensive.
In New Zealand the banks I’m mostly lending for the purpose of purchasing residential and commercial property, and it is rather difficult to get a loan to start a new business. However there are number of mortgage brokers in North Shore who specialise in this area, and you have an array of non Bank lenders that they can bring on board. However for these mortgage brokers in Papakura they must have particular skills to enable them to properly and formally value the new business, and they will need to be able to read financial statements and to evaluate the quality of the business and the likely market demand. They must do this in any case to a very high level of competency, because their non Bank lenders will expect nothing less.
However for most new business start ups in New Zealand the experience is that they have to make do with next to no funding, which means they have to go through the process of living very frugally and feeling very exposed because all of their own funds are tied up in the business. A typical response from a mortgage broker when approached by a new business start up is to advise them to come back in a few months time when they have actual product that they are selling to real customers for real money, and pretty obviously once that is the case then the risk to the lender is reduced significantly. This means that the business startup owner must use their own resources to get the business off the ground, but once they are looking like they going to be successful then the mortgage broker will find in funding which means they can expand and automate and fully markets and develop their product line. Find out more about all of this stuff by reading things.