If you have already made your business plan and have decided to which business to do but you are worried about funding, then you have come to the right place to look for solutions! This article will take a look at some ways to fund your new business if you are not looking to take loans from the bank.
There are many businesses that started out without any prior loans or funding and have become successful. One such example is of Anand Mishra Star Infranet CEO who founded his company, Star Infranet without any funding initially. However, there are many ways to fund your business if you really require it.
Some tips on funding your new business:
- You can get start up loan if you have been trading for sometimes. For example in the UK- if you have been trading for less than 24 months or no longer than that- you will be eligible for the loan.
- Peer- loans: peer to peer loans such as Zopa or funding circle, where you can get in contact with private lenders. Be sure to understand and make a clear contract with the private lenders before you go into the contract to get the loan.
- You can also get some micro loans of small amounts that can be easily paid off if you do require some cash out of necessity.
- Another great way to fund your business is crowdfunding. Private individuals can offer you certain amount of loan towards your business venture.
- You can also look for asset financing or loan which is similar to mortgage system. However, in case you cannot meet the obligation, the asset will go on to become repossessed so be careful when you take a loan against your assets. Make sure you understand all the terms of the loan before accepting the same.