Additional sources of business financing are useful not only for start-ups, but also when the owner wishes to expand his or her business. Each of these cases, however, involves looking for the right form of financing that suits the nature of the business and its current needs. How to look for new funding in 2020? 
There is no denying that the growth of a company is primarily based on capital. Even the best and most carefully developed business plan will not have the desired effect if there is not enough money to implement it. To this end, many entrepreneurs choose to find a additional source of funding which does not require them to operate solely on their own budget.
The choice of financing is primarily determined by the individual needs of the company. Much depends on what the entrepreneur wants to spend the cash outlay received on - whether he or she wants to start a company from scratch or expand his or her business. Regardless of the requirements, looking for new funding for the development of a company in 2020 opens up a huge range of possibilities for the company owner.
Forms of company financing in 2020
The forms of funding fall into two main groups:
- funding through internal sources,
- financing through external sources.
The first refers to the situation in which the entrepreneur finances the company's activities out of his or her own pocket and out of the profits generated by the business. This group includes depreciation (i.e. reducing the value of fixed assets by using them) or factoring. Nevertheless, most entrepreneurs prefer the second financing option, through which they can raise funds for business development without interfering with what the business generates.
External sources of financing consist of external capital, i.e. funds, coming from outside the company. However, it should be emphasised that most of these are repayable, so the entrepreneur must expect to have to pay back the money used.
Seeking new funding for company growth in 2020 is possible in many ways. One of the most common is the use of all kinds of grants and subsidies. Entrepreneurs also very often reach for credit offers from banks, which prepare special programmes for business owners.
Subsidies for companies in 2020
The year 2020 is the last chance to benefit from the programmes in force in this EU perspective. This is because they have already been implemented since 2014. Nevertheless, the financial effort that the European Union has allocated to business development is huge. Current competitions and programmes can be found in the search engine available on the European Funds website ( https://www.funduszeeuropejskie.gov.pl/wyszukiwarka/ ).
Funding from EU programmes in 2020 can be obtained for, among other things, industrial research and development work. Such a programme is aimed not only at the small and medium-sized sector, but also large enterprises and even consortia. The research supported is primarily concerned with industry and experimental development work. One of the current competitions is the 'Fast Track - CORONaviruses', for which the call will continue until the end of this year.
Soon, on 24 September 2020, the next edition of the 'Credit for technological innovation' competition will also begin. This is an opportunity for entrepreneurs seeking funds to finance the purchase of machinery, company equipment, as well as software, to acquire necessary patents, or to renew infrastructure or build a hall or production line. The call will last until the end of 2020.
The European Funds also do not overlook entrepreneurs who have failed in business and are planning to start up again. For them, the 'New Start' competition is available, enabling them to obtain funds to analyse mistakes made, as well as to develop their own skills and those of their employees.
Business Angels
In addition to grants, every entrepreneur can also benefit from financing by so-called Business Angels - i.e. by other entrepreneurs supporting the development of small and medium-sized companies at the beginning of their career. In return for the contributed capital, however, they expect shares in the company, which is considered by many entrepreneurs to be a risky step.
Nevertheless, those who choose to take advantage of this forms of company financing Business Angels can count on the support of experienced entrepreneurs, and often also on the related benefits, in the form of a broad base of valuable business contacts. It is worth noting that Business Angels are usually interested in innovative and creative ideas that have a chance to appear on the market.
Crowdfunding
Crowdfunding is a relatively new form of fundraising for business development . It is based on crowdfunding by setting up a fundraiser on a special website with the aim of improving the business. However, the creator of the project must present it in an interesting way in order to gain the favour of the contributors. The most popular crowdfunding platforms in Poland include: PolakPotrafi.pl, Wspieram.to or Zrzutka.pl.
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