In order to set up your business, you should have equity if possible.
Because the equity ensures that
- Your company remains solvent
- the risk of liquidity problems is minimized
- You have to draw less outside the capital
The minimum equity capital should not be below 20% if possible
Bringing inequity makes it easier for you to access outside capital if you cannot start your own business entirely from your own resources. With the equity you bring in, you convey to the banks and investors the seriousness of your entrepreneurial project as well as your own commitment to take a risk. This means that banks and investors are also more willing to accept the economic risk involved in providing external capital. You may visit 918kiss download site while checking information on equity online.
Pay attention to the financial rules
The equity you should use to
to finance the fixed assets
to finance the fixed assets and a third of the current assets
to cover the fixed assets and the iron stocks of the current assets
Disclosure of equity in the balance sheet
In the balance sheet, equity results from the difference between assets and liabilities. Assets and liabilities must always be the same in terms of amount. If there is a different amount on one side, a difference is added as a balance.
Equity is also referred to as business assets.
What other advantages does equity have in starting a business?
Bringing equity into the business start-up is advantageous because
- the equity is interest and repayment free
- your company’s equity is available indefinitely or for a long period of time
- the equity is not linked to any conditions
- equity minimizes the risk of your company becoming over-indebted
- equity creates less dependency on lenders.
The provision of equity through third parties
If you do not have the opportunity to contribute equity, there is also the possibility of obtaining equity through third parties.
Ask for support from your friends or family.
The best thing to do first is to ask your friends or family members whether they have the opportunity to support you in your business venture. Please note, however, that the participation results in a liability claim against the third party.
In addition to friends and families, there are also private investors, such as private equity investors or venture capital investment companies.