Starting your own business takes a lot of courage. From building a successful business model to getting the required funds, it is a gigantic task. You require money every step of the way. In the current ecosystem, there are a host of options to choose from when looking at financing for your business. These options will not only help you in funding your business but will also help your business grow.
This is one popular way to source funds. There are a lot of crowdfunding websites which help you find people who are keen to invest money in your business. Websites like Kickstarter, Indiegogo, Rockethub etc. are popular in this sphere.
- Angel Investment
Angel investments involve people known as Angel Investors. These are people who have healthy reserves of cash and are open to investing it in different upcoming businesses. These investors sometimes also provide mentoring along with funds.
- Venture Capitalists for Your Business
Venture capital is a type of funding which is provided to businesses at an early stage. Venture capitalists typically invest in only those businesses which show long-term growth and high monetary returns.
Microloans are loans which are provided to business with a few employees and low capital requirements. These loans have an extremely short-term and also low-interest rates. They are provided by micro financers or NBFCs.
- Personal Loans
Personal loans are the first option anybody would think of, when he or she needs financing for his or her business. Nowadays it is easy to apply for a personal loan online itself.
- Purchase Order Funding
Purchase Order Funding or Purchase Order Financing is when you get money upfront for your verified purchase orders. You can quickly meet your high demands and not lose on a customer because of less cash flow.
- Vendor Finance
Vendor Financing is when a vendor lends money to a customer to buy the vendors’ services or inventory. Such kind of lending takes the form of a deferred loan.
- Loans from Family, Friends or Acquaintances
These are some immediate options you can turn to if you need urgent funds.
There are a lot of startup conventions, hackathons etc, in which if you participate you can win prizes. These prizes sometimes include money or if your business sounds promising then you may receive funding too.
- Product Pre-Sales
If your business is something related to building products, then one way to get money for production is to pre-sell the products. You need to have a strong product and a good marketing strategy to sell it.
The above are some possibilities which you can consider to get funding for your business. There are many banks and NBFCs which provide personal loans for business needs. The process is hassle free and you get multiple services, such as using a personal loan emi calculator which helps you to get an estimate about how much emi you will have to pay each month.