So you have a good business idea, and are planning to kick start your business? Looking for funding for your small business would be your next move. Here is a list of a few sources of funding that you might find useful:
1. Owned assets – Obviously, the fastest way to raise money for your small business would be from your own assets. These are money that you may have saved for years from your salary, proceeds from selling properties that you can sell, or any prized possessions.
2. Friends/Relatives – Borrowing from friends and relatives is your next option, of course you would have to eventually pay them but advantages are zero or minimal interest, and the pressure of when you are going to repay them is lessened.
3. Cooperatives – is a nice source of funding, you might as well need to scout a suitable finance cooperative that can lend the amount of money you need. There are some cooperatives that you can lend you right away provided that you can prove that you can repay them and your income can actually pay. Besides, cooperatives are built to help.
4. Bank Loans – You may also find more funding by acquiring loans from banks A little note though, getting business loans from banks oftentimes require that your business has been around for at least a year. If you are still a startup, consider personal loans from banks instead.
5. Microfinance institutions – Microfinance institutions are mandated to provide assistance to small businesses with little capital by providing loans with reasonable terms and affordable interest rates.
Small Business Corp. (SBC), a government-backed microfinance institutions, offers collateral-free loans as long as your meet their requirements.
6. Venture Capitalists (VCs) – These are companies that assist in funding promising startups. if you are looking to get funding from VCs, make sure you have a well written business plan that can impress them.