There is a variety of sources out there that you can use in order to fund your bookie pay per head services company.
Bookie Tips: Sources, Pros and Cons
In this article, we are going to tell you what the best sources are, and what their pros and cons are.
Although big banks are not very fond of lending cash to a small business, a community bank, similarly to a credit union, is more open to the idea of lending a hand to a startup.
Since 2007, the volume of loans for Startup companies has grown from $17 billion to an amazing $302 billion nowadays.
Before telling you the pros and cons of asking for cash from a community bank, you must keep in mind that you really cannot tell these types of institutions that you are requesting cash for a bookie Sportsbook operation.
Your best bet is to tell them that you are trying to open a small online customer service operation, or something on that line of work. This also applies to Venture Capital, and SBA’s.
Pros: a community bank is willing to help a small business, whereas large banks are more rigid when it comes to their application process. They are also fond of providing loans to the lowest-risk borrowers.
Cons: On the contrary, a community bank doesn’t have as many free products as large banks, and their interest rates on loans may not be as competitive.
A venture capital firm is one that can invest in a bookie pay per head company in exchange for a share of the business.
Pros: A VC is able to lend a large quantity of cash, and it can also infuse your bookie business with much needed prestige and advice. Also, since you are not actually requesting a loan, there is no interest to pay.
Cons: The bad side of dealing with a venture capital firm is that, like stated above, you may have to give up a big portion of your bookie pay per head company in order to get the cash that you need to get things going.
Small Business Administration
The Small Business Administration or SBA make thousands of loans every year, and your bookie pay per head business can be one of the beneficiaries.
Pros: A risk-averse bank may actually prefer to make a small business administration-backed loan due to the fact that the government is willing to guarantee as much as 85% of the total loan in case of default.
Cons: In order to get a loan for your bookie Pay per Head Services company from an SBA, you will have to deal with a ton of paperwork.
Websites such as IndieGoGo, Peerbackers, RocketHub, and of course the most famous one, Kickstarter, are always willing to give bookie price per head entrepreneurs a hand in order to raise funds for grown their bookmaking businesses.
Pros: The power of crowd funding can be exactly what you need when standard financiers turn you away.
Cons: Be careful with the way you promote your business to the crowds due to the fact that you are collecting cash and asking others to invest in your bookie operation, so you might incur in violations related to some regulations and security laws.
This is a person that have a high net worth and who is willing to help a bookie pay per head company with some funding in exchange for some ownership rights in the long run.
Pros: Since these are private citizens whom are using their own funds, angel investors are probably one of the top options for a bookie company due to the degree of discretion related to the money they give you.
Cons: For some reason angel investors are known for not re-investing, which means that if they give you a loan they are not likely to help with a second one in case you might need it.