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  • Writer's pictureMia Vassallo

The Basics of Financing a Business

It's critical to find the correct funding model for your business. If you borrow money from an unsuitable source, you risk losing a piece of your business or being stuck with repayment conditions that will stifle your expansion for long.


Friends and Family

If your finance requirements are modest, you may wish to look into less formal options first. In exchange for setting up a loan model comparable to some of the more formal methods, family and friends who believe in your business can give straightforward and beneficial payback terms.

Debt Financing

A bank or another lending institution may provide debt funding and there are various advantages to using debt to fund your firm. The lending institution has no say in how you manage your business and does not own it. Your relationship with the lender ends once you have paid back the loan. This is especially critical when your company grows in value. Further, you can deduct the interest you spend on debt financing as a business expenditure.

Off-Balance Sheet Financing

Off-balance-sheet financing isn't the same as taking out a loan. Its primary purpose is to keep major acquisitions (debts) off a company's balance sheet, making it appear stronger and less debt-ridden. Off-balance sheet financing is carefully controlled, and its usage is governed by generally accepted accounting rules (GAAP). This sort of funding is not suitable for most organizations, but it may become a viable choice for small enterprises that expand into bigger corporate structures.



Finance can help you find the best methods to funding your business. If you would like to know more about how ZCV Capital and Consulting can assist you in all your finance needs call 0413 719 646 to speak to our loan specialist today.


Who are ZCV Capital and Consulting?

Based in Melbourne Australia, ZCV Capital and Consulting are proud to work on transactions all over Australia.

​With over 25 years experience, our team have a deep understanding of the needs to not only survive, but thrive in an ever changing world.

ZCV offers consulting and capital raising services in a number of different industries including:

Property Finance

Start Ups

Digital Strategy


No matter what your need is, our team are here to help. Get in touch with us today to see how we can help you to achieve your goals.

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