Traditionally, a business may use three ways to raise capital to support business operations. The business owner can make an additional contribution of personal fund, increasing the amount he has invested, in the business. The owner can seek an equity investment from an outside source. The owner can also look for debt financing, or money he can borrow and must pay back, such as any kind of loan. Typically, a business uses a combination of these methods -- owner investment, equity investment and debt financing -- to raise fund for business operations.
We at ISR raise capital by taking out loans to support our business. However, it is a business activity operated under our name and personal responsibility of the owner ans based on our personal credit history.
We often rely on gifts and loans from our family and friends to capitalize our business. Although we can’t formally offer a share of the business in exchange for these funds, we can pay the money back under favorable terms or offer other informal benefits in exchange.
To saveguard the interest of our investors we are focussed on the utilisation of funds invested and timely pay back the money with benefits as agreed by investor and our management.