Very often, the greatest need to finance a business is identified at the stage before it even begins to run, when resources are needed to set it up, but there isn’t yet the necessary income from its operation. Financing in such cases in the modern economy is usually provided in the form of credit with the corresponding provision of these credits in various ways (mortgages, prenotations, personal guarantees, exonerations, leasing and lease-backs, etc.). The success of the business, either in its early stages or later, is based on the nature of this credit and its specific terms, such as the manner and timing of the repayment, and the extent to which business property will be pledged to provide collateral. Furthermore, there are occasional “funding opportunities” through subsidies or other grants from European, national or private bodies, which are provided for investment and development and for which you need to be informed.
Finally, a special and usual case is the informal financing of the enterprise by the businessman himself without distinction of his personal property from the property of the enterprise and without a clear accounting picture, which results in risks and confusions.