10 Ways to Raise Money for Your Business
Be it a Startup Funding Banks in Delhi or a seasoned business owner, everyone requires funding. Businesses are even bootstrapped as funds are required at every stage. Funds are required for many purposes like investing in new technology, office equipment, office space, recruitment, and many more things.
8 recommendations for raising startup funds in India
- Angel Investors
This is the popular funding option for many startups. These types of investors operate individually or sometimes they are part of large investments. This type of investing is not equivalent to business loans. These investors of top investment banking boutique firms in gurgaon are risk-takers and believe in maintaining the long-term value of the invested business. There are possibilities, they request equity shares and expect to earn high returns, as well as share their expertise to ensure the venture's success.
Some startups face difficulty in finding angel investors for fundraising. They shift to crowdfunding. As long as your legal compliances are ready, you have full privilege to showcase your business plan and company requirements enabling any potential investor to participate.
- Equipment or Machinery Loans
If your business involves manufacturing or equipment then you can opt for this loan. These loans are intended to provide quick and easy access to finance and Top Investment Banking Boutique Firms in Delhi for asset needs. This type of loan is best suited for modernizing and improving manufacturing processes.
- Bank Overdraft
You can avail bank overdraft facilities if you have good relations with the bank and a good credit score . An IPO investment banks in Delhi Overdraft facility is good for fulfilling short-term needs. The draft facility is enabled on an annual basis. If you want on a yearly basis, you'll need to submit a request application. This overdraft facility allows you to withdraw funds up to a certain limit even if your current account is empty. This extension helps startups in India to meet their day-to-day expenses.
- Business Loan
This loan is availed by business owners for expanding operations, meeting working requirements, investing in technology, purchasing raw materials, etc. There are two types of business loans:- Unsecured Business loans do not require any pledging of any collateral and with high-interest rates. In the case of secured loans, you need to mortgage an asset
- Self Funding
Self-financing and personal funding are interchangeably used. During the initial phase, the capitalist and lending institution ask about your investment in the startup. When the business grows and you meet the eligibility criteria, you can apply for a loan. It is recommended that startup owners start with self-financing.
- Government Schemes
The government has launched various schemes for startups, MSME IPO and SMEs. Literate women entrepreneurs belonging to ST/SC category can also avail of benefits from this scheme. Some of the schemes for startups are as follows:- The MUDRA Scheme Pradhanmantri MUDRA Yojana Credit Guarantee Fund Trust for SMEs Atal Innovation Mission TREAD
- Peer to Peer Lending
Gathering business capital is a very common method. Lenders directly lend to borrowers without any involvement of a third party. Money lenders earn more money by directly giving the loan to borrowers as their interest rate is very high. This lending is regulated by the RBI.