How can you finance your new business in Israel?

Do you have a business in Israel and have written your business plan?

(Read also: Preparing your business plan from A to Z).

Have you decided which status would best suit your company in Israel?

(Read also: How do you choose your status in Israel?) Well done!

The next step: Finding the financing you need to start your business

Read also: How can I obtain a loan in Israel for my business?

Dray & Dray presents the following sources of financing in Israel:

• Financial institutions - business loans from your bank or another institution. You don't have to limit yourself to just one source - in fact, it may be in your best interest to diversify your sources of financing.
• Personal down payment - funds or assets that you invest yourself (this is normally one of the conditions for obtaining a loan).
• Relatives' money - loans from family or friends, repayable when your business is profitable.
• Investors - Most investors prefer knowledge-based companies with prospects for rapid growth and high profits.
• Government subsidies - Take a look at the programs offered by government agencies and departments.
• Call on our firm to assist you in obtaining loans and/or financing from banks & government institutions.
• Supplier financing - Companies generally have a payment policy of 30 or 60 days after delivery (Shotef + 30/60 d). You should check with each supplier, as many of them are likely to give you a discount when you pay the invoice before the set deadline.

Our firm's advice :

Just like when you take out a mortgage (Mashkenta) on your home. You'll benefit from comparing what different banks have to offer. But make sure you take all the elements into consideration. (collateral requirements, conditions, repayment schedules), not just interest rates.