There are plenty of financing options available, whether you’re looking for initial funding to kick-start your business or an additional injection of capital to grow. Every start-up needs access to capital, but not every entrepreneur has the means to self-fund their business or feels comfortable asking friends and family to help. In such cases, successful entrepreneurs must think creatively about how to acquire cash.
On the main page of our website, we’ve listed types of financing options available for boosting of the funding you require at the start.
Banks are the first place entrepreneurs visit whilst thinking about starting an organization. Even though bootstrapping or self-financing should always be considered the first option. When you have your own money, you are tied to the business. On a later stage, investors consider this a good point.
A normal bank provides two kinds of financing options – working capital loans and funding. The working capital loan is the loan required to run one complete cycle of revenue-generating operations. Funding from a bank would involve the usual process of sharing the business plan and the valuation details, along with the project report, based on which the loan is sanctioned.
Business credit cards are the quickest way to avail instant money. They are readily available ways to finance your startup, if you are planning on a new business and doesn’t have tons of expenses, credit cards can be of much use.
Venture capitals refer to funding that comes from companies or individuals in the business of investing in young, privately held businesses. They provide capital to young businesses in exchange for an ownership share of the business. Venture capital firms usually don’t want to participate in the initial funding of a business unless the company has management with a proven track record. Generally, they prefer to invest in companies that have received signiﬁcant equity investments from the founders and are already proﬁtable.
Angel investors Angel investors are individuals and businesses that are interested in helping small businesses survive and grow. So their objective may be more than just focusing on economic returns. Although angel investors often have somewhat of a mission focus, they are still interested in profitability and security for their investment. So they may still make many of the same demands as a venture capitalist. Angel investors may be interested in the economic development of a specific geographic area in which they are located. Angel investors may focus on earlier stage financing and smaller financing amounts than venture capitalists.
You can read more about ideas to finance your startup on the main page of our website. Do visit us to know more about investing in the startup.