How to Get Funding For a Business
Not having enough funds to run one’s business is nightmarish for small and new business owners. When it comes to raising capital, more established businesses are in a much better position to secure further money. Smaller business setups are in a shaky space because they sometimes do not have the stability and the ability to fulfill the requirements of traditional moneylenders. That category can comprise banks as well as private lenders. A catch 22 situation is sometimes unavoidable under these conditions. Business stability more often than not demands steady funds and funds are made inaccessible due to the lack of stability.
On the flipside, it’s not all gloomy and dark for small business owners. There are other non-traditional methods that can be explored. Here are a few:
How to Get Funding For a Business
Non-banking financial institutions: As a small business owner, these are your best bet. For the most part, these non-banking institutions are open to the idea of lending money to smaller business even with all their challenges. While they do have some basic eligibility requirements, these are nowhere as stringent as those of banks. This is a big plus because any business that manages to fulfill these criteria stands a good chance to secure a loan.
Talking about these institutions, lendingkart.com is one of the premier moneylenders to explore. For starters, their process to sanction a working capital loan is rather quick and this in turn, lessens the unnecessary hassles a company has to go through with traditional lenders. Plus, the entire application process is online. With a new age entrepreneur, this saves a lot of time and is quite the effortless task to complete.
Also at lendinkart.com, there are measures in place to help applicants with flexibility in loan amount, tenure as well as repayment methods. One of the reasons why businesses shy away from non-financial banking institutions is because they feel that the interest rate charged is very high. This is true for most cases, but with working capital loans, the shorter tenure and pre-closure option makes interest rates almost a thing of the past.
In addition to the non-financial institutions, there are a few more ways when wondering about how to get funding for a business.
Looking for angel investors is one more such method. Reasonably popular simply because if an angel investor or a group decides to fund the business, they also offer invaluable guidance and their industry experience to further a company. While these investors do expect equity, they are open to the idea of taking risks with smaller businesses, as they tend to get higher returns. One of the most important things to invest in when it comes to angel investors is a killer proposal and business plan. They need to see the vision clearly and the projected growth and profit plan needs to be articulated to the T.
Another method that is gaining popularity but is yet to completely be established as a successful option is crowd funding. In fact, when racking one’s brain on how to get funding for a business, crowd funding is a new-age alternative and if done well can bring in good results. Here’s how it works – the business owner puts up their business plan and details on a crowd-funding platform. All information is up for grabs, the current state of the business, projection, how much money is needed and what is the money going to be used for. Those convinced will invest. It’s as simple as that.