What Do You Need to Know About Investing in a Startup?


Interested in the idea of a particular startup and want to invest in it? There are risks, but the return could also be lucrative if it is managed well. Let’s see some of the points to be considered while investing in startups!


1. Trade Your Time and Skills for Company’s Share

 

For most matured companies, they’ll prefer cash as investment for they are already strong and stable. However, for startups, if your time and skills are as valuable to help the company grow, most will accept that as the currency instead!


2. Cut Down on the Risk You May Face

 

When you sign an investment agreement, you should set your own conditions. If the company is unable to fulfil these conditions, no transactions will be involved, which helps reduce the financial risk you’ll bear.


3. Diversify Your Investment Portfolio

 

There are startups in almost all sectors. Hence, if you are planning to invest a lot while reducing the risk of putting your egg in one basket, the smarter move will be investing in various startups.


4. Startups Have Lower Valuation

 

Startups often have a lower valuation when they first look for investment. Hence, the value you get from this investment will be lower than other kinds of investment. At the same time, investing in startups can make you become a major shareholder in the startup in the future if they are successful.


Risks You Should Be Aware Of

 

No matter how good it may sound, investing in startups has its own risks:

  • High chance of failure: Not all startups can become successful. While you may earn a lot from this investment, the risk of losing money is also high.
  • No short-term profit: When investing in a startup, you need to be ready for a longer commitment. That means, you cannot expect to divest or liquidate your cash to use at any point until a few years later. Only when the startup goes on public listing, you may withdraw your investment.

Have any startups in mind now?

Benefits of Having a Credit Score

 

According to Investopedia, a credit score is a statistical number that evaluates one’s creditworthiness. Banks usually consider your credit score in order to estimate the risk of lending you money. Having a good credit score would determine that you are someone reliable and would pay back the debt you owe on time. In addition, maintaining a good credit score has its benefits. For instance, it improves your chances to get approval when you apply for loans and/or credit cards. In this article, we’re going to further elaborate on some of the advantages of having a good credit record.


Get Higher Limits on your Credit Card


Maintaining a good credit score not only gives you a higher chance of getting your credit card application approved – it will also grant you the chance of getting a credit with higher credit limit. If you have an excellent past credit record, it allows banks to feel more confident in you considering that you have repaid all your past loans or debt on time. This will grant you higher credit limits. Banks might offer you other benefits, including cash-back programs, better interest rates, reward points, discounts, free services and much more.


Get Better Rates on Mortgage

In this economy, buying a house with your savings alone is impossible. You will need a mortgage loan. Having a good credit score will repay you here. You may get priority over those with bad credit history, or better rates on your mortgage plan. Late or non-payments in your credit history might lead your application to rejection.


More Power to Bargain on Interest Rates


Interest rates have a huge impact on the price you pay for borrowing money. If you have a good credit score, chances are, you’re able to qualify or bargain for a lower interest rate loan. A comprehensive credit report also helps bankers and other financial institutes distinguish between someone who can pay their debts on time or otherwise. You may get your credit score report from Credit Bureau of Cambodia (CBC).


How to Check your Credit Score?


According to CBC, all Cambodians can visit the CBC’s office to request for their credit report for free. All you have to do is bring along a valid identity such as your national ID. You can read more about it on their website.


Bonus tip!

The best way to keep a clean credit history is by making sure that you pay your instalments, bills, and debts on time.

What Do You Need to Know About Investing in a Startup?


Interested in the idea of a particular startup and want to invest in it? There are risks, but the return could also be lucrative if it is managed well. Let’s see some of the points to be considered while investing in startups!


1. Trade Your Time and Skills for Company’s Share

 

For most matured companies, they’ll prefer cash as investment for they are already strong and stable. However, for startups, if your time and skills are as valuable to help the company grow, most will accept that as the currency instead!


2. Cut Down on the Risk You May Face

 

When you sign an investment agreement, you should set your own conditions. If the company is unable to fulfil these conditions, no transactions will be involved, which helps reduce the financial risk you’ll bear.


3. Diversify Your Investment Portfolio

 

There are startups in almost all sectors. Hence, if you are planning to invest a lot while reducing the risk of putting your egg in one basket, the smarter move will be investing in various startups.


4. Startups Have Lower Valuation

 

Startups often have a lower valuation when they first look for investment. Hence, the value you get from this investment will be lower than other kinds of investment. At the same time, investing in startups can make you become a major shareholder in the startup in the future if they are successful.


Risks You Should Be Aware Of

 

No matter how good it may sound, investing in startups has its own risks:

  • High chance of failure: Not all startups can become successful. While you may earn a lot from this investment, the risk of losing money is also high.
  • No short-term profit: When investing in a startup, you need to be ready for a longer commitment. That means, you cannot expect to divest or liquidate your cash to use at any point until a few years later. Only when the startup goes on public listing, you may withdraw your investment.

Have any startups in mind now?

Benefits of Having a Credit Score

 

According to Investopedia, a credit score is a statistical number that evaluates one’s creditworthiness. Banks usually consider your credit score in order to estimate the risk of lending you money. Having a good credit score would determine that you are someone reliable and would pay back the debt you owe on time. In addition, maintaining a good credit score has its benefits. For instance, it improves your chances to get approval when you apply for loans and/or credit cards. In this article, we’re going to further elaborate on some of the advantages of having a good credit record.


Get Higher Limits on your Credit Card


Maintaining a good credit score not only gives you a higher chance of getting your credit card application approved – it will also grant you the chance of getting a credit with higher credit limit. If you have an excellent past credit record, it allows banks to feel more confident in you considering that you have repaid all your past loans or debt on time. This will grant you higher credit limits. Banks might offer you other benefits, including cash-back programs, better interest rates, reward points, discounts, free services and much more.


Get Better Rates on Mortgage

In this economy, buying a house with your savings alone is impossible. You will need a mortgage loan. Having a good credit score will repay you here. You may get priority over those with bad credit history, or better rates on your mortgage plan. Late or non-payments in your credit history might lead your application to rejection.


More Power to Bargain on Interest Rates


Interest rates have a huge impact on the price you pay for borrowing money. If you have a good credit score, chances are, you’re able to qualify or bargain for a lower interest rate loan. A comprehensive credit report also helps bankers and other financial institutes distinguish between someone who can pay their debts on time or otherwise. You may get your credit score report from Credit Bureau of Cambodia (CBC).


How to Check your Credit Score?


According to CBC, all Cambodians can visit the CBC’s office to request for their credit report for free. All you have to do is bring along a valid identity such as your national ID. You can read more about it on their website.


Bonus tip!

The best way to keep a clean credit history is by making sure that you pay your instalments, bills, and debts on time.

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