Are you someone who has an incredible business idea in mind and looking for sources to finance your idea? Are you someone who is opting to set up a start-up but not sure where to start? Well, worry no more because we have compiled a list of sources, which you can consider when looking for a way to fund your start-up. Let us look at them one by one.
Getting a Bank Loan
For Entrepreneurs, Banks are supermarkets, where they can get finance for their business. Banks provide various packages or plans, which you can choose as per your needs or wants. Usually, the financing plans are of three basic types including short term, mid-term and long term plans. These plans contain finance for all things you need for your business including equipment, working capital, real estate and any other asset needs. Banks want you to provide them with some kind of security when you seek to get a loan to assure that you will pay back the money. Unlike other business options, banks provide you the most flexibility. You can choose the best-suited plan for your business and decide an appropriate time for paying the money back. If you want, you can always pay back the money earlier and end the contract.
Going for a Smart Lease
When starting a new business, you will need to purchase some property or space to set up your business. You may also need to buy equipment, machinery and other things as well. This can be very tough decision to make and a heavy burden to bear. In such a situation, going for a smart lease is a good option for you because doing large down payments will be difficult and painful for you. In this case, you have to pay the money back in instalments at regular intervals of time. The instalment amount, time interval and payment criteria are set before you sign the lease contract. There are, yet again, various options for you to opt for and many plans and packages to make it easier for you to pay the instalments.
Getting funding from friends and family
This is the most flexible and lenient option for you if you are lucky. You might not even have to pledge your property to provide assurance to them. Your family and friends are the people who have faith in you and they trust your abilities. If they are good investors, they can be the best option for you when starting up a business because while others might be looking at your initiative as a big bag of risks, your friends and family will be there to back you up, support you with your idea and help you to make it successful because they are the ones who personally believe that you have the potential to do so.