Initiating a business is both a challenging and exciting prospect. What better choice can it be than to secure your future with your own business? A lot of people wish to build and become their own bosses whereas some feel the need to generate better job opportunities for others. Living with such a perspective can only help one be a better entrepreneur. Every new business needs some Business funding to flourish. Though it can be acquired by many ways, however for people seeking choices other than personal can choose from any of the below mentioned choices.
Choices for business funding
1. Bank Financing- Bank Financing has been a living option since ages, however in the present scenario these are difficult to avail. It is only granted in cases of good security or successful business track record. In fact personal guarantee and assets to compensate are given equal importance. Moreover, not all banks offer loan for start up businesses. Thus it is always advisable to look for banks that offer business funding and instead start from your bank to avail the loan.
2. Self Funding- Self funding has always been a safer option. It refers to borrowing money from your relatives or utilizing your own savings for the same. But in cases of self funding, the borrowers need to be clearer and extra careful as to when the money has to be repaid. Moreover, if it’s family, only in cases of reliable businesses and success rate should the self funding be availed.
3. Equity Finance- equity financing is the act of borrowing funds from small business owners or investors. This is an excellent option for emerging business men looking for funds for the sole reason that the amount works as an investment and not as a pay back. No guarantee or personal assets need to be put at stake except in case of success the profit shall be shared.
4. Credit cards or over drafts- a lot of emerging businesses requires only a little capital to be invested. For such cases over drafts and credit cards can be easily relied upon. In fact there are a lot of banks offering interest free loans for the first year which in itself is a very profitable and safer option for new businessmen.
Thus there are a variety of modes of Business funding available according to the feasibility of an individual. One can choose any of the above depending upon the genre and the promising nature of his/her new business.