4 Easy Ways to Gather Capital Start a Business

If you do not have enough money, there are many ways you can make money to start a business. You can getting a loan from a sibling or borrowing with a friend or relative on a proximity basis, to apply for a loan to a bank or financial institution.

Yes, the need for capital has become a common problem facing someone when talking about starting a business or developing it.

It is not surprising that the money needed to be worth up to tens or hundreds of millions to billions, then someone can willingly apply for loan money with collateral or pledge assets such as vehicles or property.

In fact, there are other routes you can do when you want to get business capital in addition to the way mentioned earlier. Here’s an alternate way.

1. Funding to Start a Business

The term Funding is more commonly known as crowdfunding. This step is one of the most popular means of raising funds to do for now.

Although not many have yet to do so and are not as well known abroad, but the pace proves to be effective in order to raise large amounts of funds.

In fact, crowdfunding can also attract the attention of investors from private equity firms, where they actually have their own crowdfunding sites.

Many advantages and conveniences of this crowdfunding. Because, you just need to have a creative idea that is useful for the crowd, then can raise funds from sites that provide it.

Even so, sometimes the percentage desired by investors is usually quite large, between five and nine percent.

2. Find angel investors

Today many people or “thick pockets” companies are willing to invest in a prospective business. Even unconditional uncomplicated.

If you can find a good angel, they can even give away the money for free.

Terms look for this way is relatively the same as crowdfunding, because your business should be beneficial to many people. If your business is consider to grow rapidly and contribute greatly to the surrounding environment, the angel was willing to provide funds in large numbers as well.

Even so, most angels will usually ask for some of the company’s shares in return for the money invested. Although referred to as angel, but sometimes the amount of rewards he requested can be quite large.

3. Find a loan to Start a Business

This method is conservative, but as mentioned above, this step is the most widely used community. That is, Start a Business with capital by using a bank loan or other financial institution.

In comparison with crowdfunding and angel investors, the advantage of this way is that you do not need to partner. So you’re free from worry with share-sharing that can interfere with the freedom of business management.

Even as the Internet progresses, it creates the growth of financial technology services that provide online financial services. Simply with internet connection you can submit an online loan. So you do not have to bother coming directly to a bank or financial institution.

Currently there is also a portal that provides a comparison of loan products money from various banks and financial institutions. So you can apply for various credits but by choosing the product as needed first.

However, when applying for a loan to a bank or an authorized financial institution, your business should be eligible for a creditworthy facility. An example is a business that you run at least 6 months old.

Even if the proposed fund is relatively large, then you also need to pledge the company’s assets-such as buildings, vehicles, or other collateral. The total amount of credit you can get will vary from hundreds of millions to billions.

4. Assure the assets

This method does need valuable items that you have. But the advantage is that your asset can also be a measure of how much money can be earned, as well as the ease and speed in getting the funds disbursed.

On the other hand, you should also be prepared to lose the pledged asset when a bad credit occurs. It is therefore best for you not to rely solely on these pledged fixed assets.

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