FUND YOUR BUSINESS
To run a business few things are very crucial and important. The most important components of a business are:
Each and every component is equally important. Presence of all these basic elements leads to a successful business. Imagine you have arranged the land required for business. Even manpower is also arranged. But what if you have no money. How will you manage your business without capital? So it can be said that capital plays a vital role in business world. Everything is managed through capital.
So first talk about capital. What is meant by capital?
Capital is that money which is arranged for running a business. This capital can be arranged in either of two forms:
- By self(equity)
- By loans(debt)
If the person is having his own money for running a business then great. But there are those who needs fund for their business. Here we are going to discuss about the latter case. If the person is looking for debt then there are many options which hold some parameters as true. But there is nothing to worry about. A little knowledge about the process makes everything a cakewalk.
There are many sources through which money can be managed. Let’s discuss some of the them.
What are you searching?
- Bank loans
- Loans from private institutions
- Loans from friends and family
- Loans against mortgaged or unsecured
So these are some of the common modes. Each and every method has some pros and cons associated with it. In fact everything has its own advantage and disadvantage. But our prime focus should be on its advantage keeping its cons in mind.
- Bank loans
We all are aware of bank loans. Capital borrowed from bank at a fixed interest is known as bank loans. Each and every bank has their own criteria for lending loans. So whichever bank you prefer for your help. Please take into account each and everything associated with it.
- Loans from private institutions
Those institutions which lend loans for a fixed duration. These institutions provide loans against some assurance. At a fixed rate of interest.
- Loans from family and friends
This is one of the most preferred ways. Friends and family have always served the source of help. It’s a popular saying –“sukh dukh mein apne kaam aate hain.” There are some who are still afraid of going to a bank for money. So they think this is the best way of borrowing money.
- Loans against some mortgage or unsecured
This type involves some kind of security. That is if you are borrowing ten lakhs from someone then something equivalent must be submitted as an assurance.
Though all these above mentioned involves something as a security. Against which you are provided loan. Nowadays there are some other modes of loans which are gaining its ground.
Like there are some companies which provide fund against its share in equity. It can also be for some specified terms and conditions. So specifications of such companies are as follows:
- Seed funding
It is also known as seed money or seed capital. In this mode of funding security is offered in which an investor invests capital in return for an equity stake in the company. As one can conclude from its name “seed” which means initiation or early investment. This kind of investments is granted when the business is just started. The amount invested by the investor is generally up to 5 lakhs. In short it is small scale investment.
- Angel funding
It is also known as angel funder or private investor, etc… It is an investment in which influential investor who provides capital for startups in exchange of an equity share. The amount lend is generally 10-25 lakhs. Here the investment is higher than seed funding.
- Venture capitalist
Venture capitalist is the investor who provides loans generally to startups or to companies which are established. Those companies which require funds not for establishment but for expansion. The amount funded is usually greater. More than 45 lakhs. So these are some common methods for borrowing. Vey special as these investment require a share in equity. Whereas in bank loans whether your business is flourishing or not you have to pay the said amount within that stipulated date.
Whereas in these funding your amount will be charged on the basis of profit earned at the end of business.
In case if you are interested. And if you are searching for some help. Then if you have come at the right place. Businessbatao is that solution. Businessbatao has expertise who will guide you. It has a specified team who will serve your purpose. So do get registered for further assistance.