Business and Finance
How to Raise Funds for Your Business Start-up
The next question that comes in your mind, as soon as you start a new business, is from where to get the initial cash from? It is a tough task towards which you need to work on a lot. There are many ways that can bring funds for your business start-up, but a few of them which may help you are listed below.
- Finance company:
Making cash by approaching a finance company is a safe process. The amount thus got can be used in purchasing assets like furniture, a little cash in hand for miscellaneous expenses and spending on other petty expenditure during setting up a new business.
- Asking friends or relatives:
A friend in need is a friend indeed. When setting up a new business, acquiring initial cash would be little difficult. The easiest way to get this cash is from acquaintances like friends and relatives. You can always approach them with your planning structure and your way ahead in business and give them an assurance that you would repay the money without fail. At times people give you money without asking in return. It would be professional of you if you keep them updated about the escalations in your business to make them feel that, you feel the same as they feel for you.
- Approach a bank:
A loan from a bank can be got by submitting collateral like property document, land papers, jewellery, or any other property documents. Employees can avail loans by submitting their proof of employment which might include their salary statement or payslips. Though it would take a little time in getting a loan, banks are good resources to tap on.
- Put your property for sale:
If you are not happy with the interest structure on a loan given by a bank, you can opt for an option of selling your property like a house, land, apartment, your old vehicle, or any bonds on your name. This way, you can get some cash to fund your business.
- Gold loan:
If you find the interest given against gold loans are low, you can opt for this to attain money to meet your business needs initially.
- Private bank loans:
Another option of acquiring loans is to visit a private bank. Though the interest are high, it is very easy to get these loans. If you are really sure that you would get huge profits in a short time, you can go for this option.
To keep risk at its minimum, new businessmen opt for taking machinery, labour and other assets on a lease. This way they are free from the tension of huge initial investment which has no returns.
- 401 (k) financing:
If you want to start a business after your service, you can use your retirement savings and your provident fund amount as an investment towards starting up a business. This way you can secure your old age future too.
- If you are a person who is an employee and want to start a small business, you can go for acquiring a loan and always secure your loan by taking a ppi claim as well.
About the Author: The guest post was contributed by Leo, financial guest blogger from Manchester, UK. Find out more about her finance related blogs at https://twitter.com/financeport