Growing your business takes a lot of hard work, and entrepreneurs face many challenges while doing it. Getting capital investment is one of these challenges because when you start a new business, you need funds to set up a new office, hire new staff, and everything else that is part of your process. Therefore, we have brought together all the information about Small Business Funding options available to make it easy. Let’s take a look.
Ways to fund your small business
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Self-finance
Investing your own savings to grow your business is the best option for first-time entrepreneurs. Since starting your business comes with many risks, lenders usually hesitate to give loans to entrepreneurs. Even when you plan to go for funding with other investors, they question how much you are willing to invest in your own business. Hence, self-finance remains the best option when you are planning to grow your business. In addition, if you want to earn extra income without the hassle of starting from zero, you can join a remote such as our work with us program.
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Finding an angel investor
People who have surplus cash are known as Angel Investors, and these guys are on the lookout for new startups in India. Many well-known companies today are funded by Angel Investors, and hence pitching your company to an angel investor might help you to get some funds. These guys will invest in your company to earn higher profits, and they might also ask for some share of equity in your company.
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Apply for loans under government schemes
The Government of India has launched loan schemes that allow startups to get some funds for their growth. Over the past few years, more than 40K startups have benefited from this government loan scheme. The names for some of these government schemes are listed below:
- Standup India
- 4E
- Pradhan Mantri Mudra Yojana, also known as PMMY
- Bank Credit Facilitation Scheme Credit Guarantee Scheme (CGS)
- Sustainable Finance Scheme
- MSME Business Loans For Startups In 59 Minutes
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Fintech loans
Fintech sectors are one of the largest growing sectors in India, which provides personal loans without collateral and business loans which are financially beneficial for business owners and young entrepreneurs. Applying for Fintech loans is another option that can help you to get funds for your business.
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Peer-to-peer lending
Peer to Peer lending refers to the system of money borrowing without any third parties or intermediaries involved. When a business decides to go for this method while raising funds, lenders usually charge them higher interest than banks, and that’s how they profit through it. RBI regulates peer to Peer lending platforms, and hence you can also go for this method when you want to go for a business loan.
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Crowdfunding
Crowdfunding has gained popularity over the last few years, and it refers to the process of getting money from various people existing all around the world. Some websites allow you to create a listing, and there you can mention details about why you want to raise money along with a goal for money you want to raise. These websites charge you some commission, and if users find your listing interesting, they’ll contribute with some funds so you can reach your business goal.
After reading this article on 6 Ways to Get Funds for your Startup or Small Business , you should have generated some new concepts. On this page, you’ll find more suggestions: 8 Apps Which Can Be Helpful for Employee Management
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