If you happen to be a budding entrepreneur, one of the biggest hurdles to overcome and resolve is the need for funds or capital. It is critical for any venture.
But, finding sources of availing funds may be a bit tough for the owner. On that note, the availability of the instant business loan and start up business loans are viable options these days.
Let’s check out many ways you can gather funds for your start up business in this post!
- By self-funding
One of the most obvious ways you can get the money to fund and operate your start up business is using your own money. You may have saved for years to start your own venture. Many potential business owners do that. If you have managed to do that, you can avoid paying interest charges to lenders for an instant business loan.
- By taking an Instant business loan
Nowadays, the facility of the instant business loan is also available with online lenders. Based on your eligibility and lender’s policies, you can get an amount as high as up to Rs.45 lakh at affordable rates. If your CIBIL score is robust, you can get a lower business loan interest rate and manage to pay affordable EMIs. If you have not saved enough, or your funds are short, you can always apply for the instant business loan online. The application for the business loan gets processed faster, and you also have to meet less complex eligibility norms.
- By applying for start up business loans
Many online lenders these days have specific business loans catering to your needs. Since you wish to get off your startup business, you can directly apply for the startup business loans. The facility is available with top banks and non-banking finance companies (NBFCs) in India.
- Via Crowdfunding
Crowdfunding has emerged as one of the newer ways of funding a start up. Yes, this funding option is gaining a lot of popularity these days. It works like availing a loan, contribution, pre-ordering or investment from more than one person. But it is also among a top competitive way to avail finance for your new project. It is because unless your business idea is rock solid, you are not going to get much response. Yes, in this case, just putting a simple description and images are not going to work in your favors. You ought to be smart and put efforts in convicting the crowd that your business is genuine and could be profitable for people.
- Via venture capitals
Venture capitals are funds that get managed professionally and are invested in organizations with huge potential. They are generally invested in a business against equity and exit on the initiation of an IPO or an acquisition. Venture capital could be just right for small businesses that are just beyond the phase of start up and are making profits already. But it also comes with a downside as it may have a short leash when talking about company loyalty. Such funds may generally be recovered within 3-5 years. If the product of your company is going to take longer in the market, venture capital investors may not be interested in your venture.
You just went through some of the leading and commonly used options while generating funds for your business ventures. Based on your needs, you can decide on the best and opt for start up business loans and more accordingly.
Bajaj Finserv brings to you pre-approved offers on business loans, personal loans, home loans and more. It can simplify your loan processing and make it less time-consuming. You can check out your pre-approved loan offers today after sharing your primary details like the name and the mobile number.