How to raise fund for your business
If you are a business owner and want to raise capital for your business, then you have to use some form of financing. There are number of ways you can seek funding for your business –
1. Bootstrap your business :- For instant you can borrow a credit card , that offering 0% or low interest rate. They offer cash for a period of timing without incurring interest.
2. Crowd funding - Crowd funding gives you the opportunities to connect with like minded people who you would not normally be able to engage. You can gauge interest in your product and understand what resonate with people and what’s not. Most importantly, crowd funding can help you raise money to fund your business. Use platform like landing kart or startup India.
3. Apply for loan - Now a day technology creates new way of raising capital, traditional financing product remain the small business fund their operation. Almost 75% of financing from new firm comes from business loan, credit card, and line of credit. If you need cash for machines, tech devices, office furniture, consider equipment finance. Before applying business loan, make sure to prepare any documents ahead of times.
4. Raise fund by friends and families – Raising capital through friends and families are viable options for many. Most of the family members suggest you about faith that you will success. They understand your plan and clear about the risk.
5. Govt loan scheme – The govt has initiated few loan scheme to provide collateral free debt to aspiring entrepreneurs and help them again access to low cost capital some schemes are – CGTMSE, MUDRA, and stand-up India.
6. Bank / NBFC – Formal debt can be raise from bank and NBFC at this stage as the start-up can show market traction and revenue to validate their ability to finance interest payment obligations. This is specially applicable for working capital .
These are some tips to find fund for your start-up and business growth. The primary things are that if you have any strong business idea and plan then sources of fund has open for next opportunities.