Many people want to start businesses, yet they do not know how and where to get the funds needed. Here are some of the sources of business funds which you can obtain easily.
1. Personal loans
One of the best ways in which you can capitalise your business is by borrowing from your relatives and friends who have surplus funds. Such a loan has no interest, though sometimes friends or relatives can charge a lower interest to cover the lost opportunity for their money. For sure, personal loans are viable and attractive business proposition—it is the best way to finance your business with the least cost.
2. Personal savings
The best way to capitalise your business is by using personal savings. With this kind of business funding, there are no worries whatsoever about interest or principal payments. In the case of business failure, you will only lose the invested money.
3. Credit Cards
The other good way for you to fund your business is using credit cards. In fact, credit cards have a lower interest rate compared to pawnshops or loan sharks. Admittedly, it is not recommended that you use loan sharks and pawn shops to finance your business. For you to get the most of your credit, purchases should be made right after the cut-off date. By so doing, you will ensure that the credit is reflected in the bill for the month that follows.
4. Bank loans
Whether you want to pay for marketing, hire premises, pay for staff or acquire assets, you can always apply for business loans, grants and funding from a variety of sources, especially banks. Banks are normally the common sources of business funding. Nevertheless, you must prove that you are worth before your loan application is considered. Admittedly, bank loans are not the best business capital for startups. For one to qualify for a loan, one must show a track record in the business supported by feasibility studies and financial reports.
The above are four sources of funds for starting a business. Others include Consignment of goods, investment liquidation, and leasing.