Bootstrap financing can be understood as a concept in which financial assistance

Question

Bootstrap financing can be understood as a concept in which financial assistance is expected from various sources in and around the business venture.It not only includes financial assistance but also various other inputs are also treated as resources in a new business venture.

1.It fits into the strategic plan of a new venture as it ensures the following aspects.

2.It ensures positive flow of cash throughout the process.

3.Bootstrap in other terms means borrowing money with less interest which will be a great help for a new entrepreneur.

4.Trade credit is a best bootstrapping financial effort for a new business venture.Trade credit is when a purchase is done on the basis of credit for a certain number of days.This happens only when a mutual trust is there between the tow parties.

5.Bootstrapping finance is also possible when a confirmation letter is obtained from the customer confirming an order that he is planning to purchase from you in the near future.

6.Advance financial option can also be arranged through loans by promising the business building under construction for mortgage which can be paid for a longer period.

These strategies can be a positive plan fit in the bootstrapping financial fit of a new venture.

Explanation / Answer

How does bootstrap financing fit into the strategic plan of a new venture?

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.