Raising Foreign Capital for Your Business

By Ralph Berneth

With the globalization movement of economic paradigm, businesses have been made available to different nationalities who want to invest in a foreign corporation. Guided with national provisions and legal policies, it has made investment and raising foreign capital possible to augment and help budding businesses have a wider range of capital infusion.

The first and most common form of raising foreign capital is through franchising. With franchising you will increase your capital by selling the rights of your business. It is in a way selling a replica of your business. You will have lesser risks while increasing your capital investment.

Raising foreign capital through franchising will let you earn a percentage of the franchisee's revenue. The processing procedure, advertisement and products will come from you, guaranteeing the quality of your business. But you will still need a legal adviser to help you out on the legal aspect of the transaction.

Another form of raising foreign capital is by licensing. Licensing is selling your product or business name. You will sell more products and still get a percentage of the sales. Most businesses will choose this option because there is a lesser chance of competition.

Even if this is outside national jurisdiction, the profits from this franchise as convened in a common term agreement will allow the original owner of the business establishment to benefit greatly. For a more efficient means of raising foreign capital through franchising, it is suggested that both parties seek the help of an attorney who specializes in franchise law.

Also, raising foreign capital can be done through selling off company assets. This is a tried and tested raising foreign capital option. Say you have a property that you don't find essential but someone else does, you can sell it off if it doesn't suit your company profile. If you have intellectual property such as patents, formulas, customer lists, or trade secrets you can also use this as a means of raising foreign capital.

The third method of raising foreign capital is through hard selling of company assets, either through stocks or through other means. This is especially effective if you have an unproductive segment of your business that may benefit another company. New shares bought equal new capital for your company.

There are numerous raising foreign capital that are already proven but the success of your business through the use of these methods still depend on how you fit it to your company's focus. Know each option by heart and determine with which you'll find achievement in your venture. - 29971

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