Self-financing and entrepreneurs go in hand-in-hand – it is, in fact, the top form of financing used by start-ups*. Some also seek funding from family, crowdfund or do a combination of both. Alternatively, another option is to use a credit card for short-term financing – but this comes with high interest rates and can be expensive in the long-term.
Using your own money for your business can come with perks such as no interest, no instalment payments or the worry of getting in debt. Bear in mind that investing your own assets is not without risks. Since you’ll have to dip into your hard-earned savings, be sure to:
Create a separate business account for better money management
Consider your money as a financing or equity to your business
Keep detailed accounts of your expenditure
Not use your retirement or emergency funds