Takeover financing

Financing is important not only for acquisitions, but also for growing your business. There are different types of financing you can use, depending on the purpose.

Friends, family & fools

Suitable for: Startups, expansions, high-risk financings. 
Note: When things go wrong, your personal relationships are also under pressure.

If you have a really good idea, that doesn't mean others will think the same. But friends and family might (and fools...). You often see this group of investors, or lenders, in the very first phase of a new business, and then it is also usually small amounts of money. You don't have to think about loans right away, but you might be able to use the (family) savings pot, for example, in the start-up phase. When doing business with family, however, there are additional aspects involved that you should discuss well in advance: Talk about participation in decisions; and what if the results are disappointing? And what if there is no success at all: bankruptcy or abandonment of the project. Make sure that in all these cases your personal relationship is not at stake as well.

Bank

Suitable for: Real estate, stock financing.
Note: Banks require collateral, such as commercial property or inventory.

Bank loans are generally only possible with solid collateral, and usually that is business premises or stock. Banks used to be willing to 'co-invest' a bit if there was a good business plan, but since the banking crisis of 2015, this is over. One advantage of collateral is that interest rates are generally lower than for loans with a high risk profile.

Advisor

Suitable for: Various financings. 
Note: Often you are already paying for the advice, even if no financing is ultimately concluded.

If you do not really know your way around the world of financing, or you are not yet sure which type of financing suits you best, you can also get advice from an advisor. He or she will identify your needs and possibilities and provide you with advice. Often these advisors are themselves resellers of various lenders, but they should advise independently. When financing a business, we also increasingly see stacked financing, in which an advisor plays a role. This form of combined financing is more complex because the terms of all the financings must be met on an ongoing basis.

Crowdfunding

Suitable for: Startups, Appealing projects, product development. 
Note: Takes a lot of time, and you must want to achieve a very appealing & visual result.

Crowdfunding is very hot at the moment. But don't mistake the plus points because of course there are also less attractive sides of Crowdfunding. It usually takes a lot of time to set up a crowdfunding campaign, the platforms of course do not accept just any application, so your (business) plan must be well put together. Many platforms focus mainly on product development where money is raised for the development and production of an innovative design. For ongoing funding, it is less used.