Continuous society development is essential for maintaining competitiveness in the competitive economy of Portland. The efforts that companies, tiny and medium-sized ones, make to remain relevant in the fields in which they operate are related to finding the necessary financing solutions in the development of the economy. Enthusiasm, the ability to innovate, the vision of market trends are not enough to evolve.
Investments are an essential ingredient of progress in any society, but the sources of financing are finite and accessible only under certain conditions. We will review the most used sources of funding used by Americans:
1. Self-financing
Many Americans go on the road due to some people who want to change the status of "employee" with that of "entrepreneur.” After much hesitation and analysis, those who decide to take this step do so with their savings.
Being in a completely new position, they avoid doing business on other people's money and paying installments and interest. Depending on the type of financial needs, self-financing may be enough to support you until you start to generate a profit. Otherwise, other sources of funding will be needed to move the financial condition forward. The main advantage of self-financing is that it offers total independence in the use of money and has no direct costs associated with it.
2. Borrowing from family, relatives, friends
Studies were done in the area of Finance and showed that many Americans use self-financing or borrow from those close to them to start or develop a business. The money received in this way is usually interest-free and has flexible repayment terms, being a much more attractive option compared to conventional lending solutions.
3. Bad credit loans
Lending institutions should be the main actor in supporting Americans, being one of the critical partners of legal entities. Beyond the principles stated in the mission of each financial company, the reality in the USA shows that accessing a loan by a company is not an easy or cheap mission. Society financing by the lending companies is done based on not at all flexible procedures, a well-developed repayment plan, no restrictions on spending money, and high-interest rates.
Newly established companies have no history. This makes the relationship with banking institutions even more complicated, so this Portland financing solution requires a lot of perseverance and taking a relatively high risk. Fortunately, the market provides companies with alternatives to traditional credit. Non-bank financial institutions, for example, have developed numerous alternative instruments and packages for financing Portland residents. Factoring is such a tool for funding and portfolio management that companies can use quickly and simply to ensure the working capital they need, be with the taxes paid on time, and develop their relationship with customers and suppliers.
4. Grants / American funds
The USA’s money available annually to the member countries for development and the elimination of economic gaps can be a very advantageous source of growth for American companies. However, experience after 2008 has shown that the excessive bureaucracy of application procedures and the lack of know-how in carrying out projects have prevented many companies from gaining access to American grants. Only certain companies benefited or remained inaccessible. In addition to American funds, Portland residents can also access development programs run by USAID or EBRD for specific areas.
5. Issuance of bonds / listing on the stock exchange
A source often used in the United States by companies to finance themselves, but a unique solution in a country where the stock market is still in its infancy, turnovers being minimal, and interest in the shares of society at the beginning of the road.