I want to secure a market for my prototype

Many innovative companies come unstuck just at the stage where they have developed a successful prototype.

The period that can elapse between having a successful idea and having a profitable business can be difficult to get through because it often requires investment – which means borrowing.

Get help from customers
Loans generally carry a high rate of interest if your business is based on a new and untried idea. If you find yourself in that situation, the road to a successful start-up could be through your future customers. Enter into talks with them about what it will take for them to buy your product once it comes onto the market.

If your prototype is good enough, customers will often be tempted by a discount for buying the product in advance.

Public sector can be attractive
Public bodies and companies with a particular commitment to social responsibility may be attractive partners because they get an opportunity both to get a good deal and to do good for the world. Click on the link below to read about the sustainable procurement goals for central and local government in Denmark.

One example is the City of Copenhagen’s purchase of electric cars for delivery and payment at an agreed future date.

With an agreement like this in your hands, you will be in a strong position when negotiating loans and so be able to significantly reduce your borrowing costs.