A Guide On The Most Common Places To Get Business Funding In India
Starting or expanding a business in India is an expensive venture that can end up draining all your financial resources before you are able to propel it to your desired growth level. If you have a viable business idea and find out that your dreams are about to hit rock bottom because of insufficient funds, you can still propel your enterprise forward by seeking business funding from different sources. In this article, the discussion will feature the top 5 sources of business funding in India.
You can get the funds you need to push your enterprise forward by applying for a start-up loan or expansion loan from your local bank. To have a chance of getting your loan application approved, you will have to prove that your business idea is viable and that it has the potential to grow and generate income to repay back the loan that you have borrowed. It is also worth noting that in some banks, you may be asked to provide collateral before your loan is released.
2. Credit Institutions
If you are a member of a credit institution and you regularly save with the institution, you can apply for business funding in India from the credit institution. The good thing about credit institution is that they rarely refuse members who have maintained good standing affordable loans to grow their business enterprises.
3. Friends and Family
If you have friends and family who are well-off, you can request them to offer you business funding. Friends and family typically offer loans at affordable rates and in some cases, they can forego interest or gift you the money you need.
4. Angel Investors
You can also pitch your business funding application to a high net worth individual who has the capability to provide the money you need. These high net worth individuals are usually referred to as angel Investors. In return for loaning you the funds you need, they may ask you to give up a percentage of your business.
5. Venture Capitalists
If your business idea has a high potential for you growth in the future, you can approach a special fund that specifically provides business development loans to high potential enterprises. These special funds are usually run by individuals known as venture capitalists. In return for the funds you need, you are likely to be asked to give up some equity in your business.