One of the most troublesome issues for any business, especially for a startup or small business is the manner in which to raise funds for ongoing projects and day to day activities. You may not be every time able to fund your business from your personal savings or friends’ help.
To that end, many banks, Indian Startups Fund, government organizations, corporate agencies, and Indian venture capitalists provide funds to the businesses that have the potential to turn into big. Here are two of the most important sources of funds for startups (1) loans and (2) leases.
You can opt for short-term as well as long-term loans depending on your business needs.
- If you need funds for short-term projects, then short-term loans are ideal.
- But for business expansion or acquiring some assets, a long-term loan might be the best option.
Before you sign with any financing institution for a loan or investment, it is best to consult a business advisor who can tell you the pros and cons of each kind of loan. There are many financing options available today for startups; so as an entrepreneur you need not give up on your dreams ideas because of a shortage of funds.
- Many startups and small businesses prefer to lease equipment and property rather than buying it since it is less risky and cheaper option in case the business model fails. Professional firms help startups hire or lease equipment and provide funds for the purpose.
- Apart from providing mortgages and leasing finance companies also provide startups with information on other sources of funds.
- Startups may face some initial difficulty in getting a business lease since most leasing companies prefer to work with established businesses. However, there is no reason to lose hope. There are many companies and agencies like Indian Startups Investment; that specialize in financing startup enterprises.