How to Finance a Company Creatively
No entrepreneur wants to admit that financing a company is a really tough challenge. This holds true for companies with multi-year operating histories as well as startups. After realizing this point back the 1980s, I started collecting examples of creative financing techniques. There's a solution for almost any situation and this is an example of one.
A chocolate company in the UK is raising capital by issuing bonds which pay the bearer in chocolates rather than in interest:
Holders of the £2,000 Chocolate Bond will receive six free Tasting Boxes
a year worth £107.70 per year which is equivalent to a 5.38% return
(6.72% gross return for a basic rate taxpayer) and those holding the
£4,000 Chocolate Bond will receive 13 free Tasting Boxes – a full year’s
supply! Worth £233.35 per year which is equivalent to a 5.83% return
(7.29% gross return for a basic rate taxpayer). (source)
For more ideas on how to creatively finance companies go here.
Recent Comments