Do you have a great business plan that you know would survive Shark Tank if only you could find the start-up capital to develop it?
Are you the recipient of a structured settlement or annuity with dreams of owning your own business?
According to a recent article in Forbes, one of the biggest obstacles that entrepreneurs face is raising enough start-up capital to transform ideas into products that generate income.
In fact, it can take as long as a year to raise the money that you need to start your business. The risk is that while you spend your time sourcing funding, somebody else might beat you to market, leaving you with nothing but unfulfilled dreams.
One option available is to apply for a business loan.
There are a couple of problems with this approach. Firstly, as a start-up, you do not have a proven business model and track record, making it difficult to be approved for a bank loan. If the bank approves you, you will need to pay back the loan with interest before breaking even.
If you partner with somebody that can fund your business, you may end up giving away equity in return. While you will have access to the funds you need to get started, you are giving away your profits and control in the long run.
Finally, you could turn to friends and family to help. The problem is that if the business fails, you are not only taking a risk with your money but with your loved one’s money, too.
Fortunately, if you are the recipient of an annuity or structured settlement, you have the option of exchanging your monthly payments for a lump sum of cash. You will then be able to use this money as start-up capital for your business without the risk.
If you are ready to start your entrepreneurial journey and are the recipient of a structured settlement or annuity, reach out to the Rising Capital team to discuss your options.