Financing Strategies for Dealsapp: A Comprehensive Business Report

This report provides a comprehensive analysis of financing options for Dealsapp, a firm on the verge of significant growth. The report identifies and evaluates three primary financing strategies. Firstly, it recommends angel investors as a suitable source of funding, particularly for their ability to offer shared ownership and convertible debts, enabling the firm to manage risk effectively. Secondly, it suggests debt financing, specifically small administration loans from the government, due to their favorable repayment terms and lower risk profile. Finally, the report explores non-traditional financing through vendor participation, emphasizing the potential for symbiotic relationships and shared burdens. The report highlights the benefits of each approach, including flexibility, strategic roadmaps, and risk mitigation, providing a well-rounded perspective on Dealsapp's financial future.

Running head: FINANCING OPTIONS
Financing Options
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Author Note

1FINANCING OPTIONS
Dealsapp is a firm that is on the verge of making growth and hence the financing strategies
chosen for the firm should be of the type such that they help the firm in making safe risk
decisions. It should also ensure that the investors are cultivated to have long run relations with
the firm. This will help both the firm as well as the investors to accrue larger benefits from each
other and grow at an exponential rate. The three types of financing identified for the firm are
listed as follows:
 As it is a moderately sized business and the business is trying to establish itself as
medium sized enterprise, it is very important for the firm to opt for angel investors as a
source of funding (Hsu et al. 2014). The angel investors are usually known for shared
ownership in terms of investing and accruing convertible debts. It will help the firm to
handle high amounts of risk in a calculated and safe way. To enable funding from the
source of angel investors the firm should be able to formulate a proper exit plan. Most of
the angel investors are best suited to guide firms and invest in them in the first phase of
development and continues to help them further as the business develops. Equity funding
is important for the firm as it provides flexibility and a clear strategic road map for both
the firm and the investor together.
 The next type of funding the firm can opt for includes debt financing. Debt financing
itself has a number of options within it and among these options, small administration
loans rendered by the government seem to be the best possible option for Dealsapp. This
could be one of the possible choices for the firm as some banks have made it extremely
easy to payback the loans through lesser number of repayment rounds and lower interest
rates (Hoover and Abell 2016). Moreover, it allows the company to take least amount of
risks and helps the firm to keep the amount and level of investment in check. This form

2FINANCING OPTIONS
of financing will also ensure lesser risks attached to the infrastructural operations of the
firm.
 In the field of non-traditional financing, the company can opt for the financing through
vendor participation. This will involve some amount of risk attached to it. However, the
advantage is that a huge part of the burden is shared and challenges are handled by both
the higher authorities of the firm as well as the vendors on an equal basis (Dolliver and
Kuhns 2016). This ensures a relationship building that is going to be very beneficial for
the sustainability of the firm in the long run. It helps both to maintain a credit history as
well as not resort to bank financing which benefits the firm in a bolstered manner. It
might also help the vendor to earn some amounts of financing through the imposition of
interests as and when the firm grows. Thus, it is a symbiotic relationship through which
both entities gain and grow.

3FINANCING OPTIONS
References:
Dolliver, D.S. and Kuhns, J.B., 2016. The presence of new psychoactive substances in a tor
network marketplace environment. Journal of psychoactive drugs, 48(5), pp.321-329.
Hoover, M. and Abell, H., 2016. COOPERATIVE GROWTH ECOSYSTEM. Democracy at
Work Institute and Project Equity, Oakland.[Google Scholar].
Hsu, D.K., Haynie, J.M., Simmons, S.A. and McKelvie, A., 2014. What matters, matters
differently: a conjoint analysis of the decision policies of angel and venture capital
investors. Venture Capital, 16(1), pp.1-25.