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Get Your business Running with These Business Funding Solutions

  • 2 min read

  • Highlights

  • Decide whether you want a loan or share business profits

  • Partnership, investors or crowdfunding are some options

  • You can use your personal funds or ask family to contribute

  • An unsecured business loan can be a convenient option

Money is the key driver for any business, whether it is to maintain working capital or have the funds required for growth. The amount of cash required to carry out daily operations or financing expansion depends on the unique nature and requirement of your business. Calculate your needs in advance by carrying out in-depth financial planning for the future. Sometimes, you may require urgent finances for reasons like repairing expensive machinery or buying inventory you hadn’t planned on earlier for a new order. To ensure that your business runs smoothly, map out funding solutions that give you access to needed cash from beforehand.

Here are a few ways in which you can fund your business to make it run smoothly.

1. Take on a partner

Getting a partner for your business will help you get in more capital. It can also lead to other benefits like new ideas for business growth, leveraging a new set of potential leads, having someone on board who has a different skill set, and being able to rely on someone else besides yourself. Remember that partnership means you share ownership and profits, so keep this mind before you finalise any deal.

2. Get an unsecured business loan

You can get a collateral-free business loan online very easily today, and use it to finance your business expansion, machinery purchase, or working capital needs. A quick online application along with minimal documentation and easy eligibility criteria makes an unsecured personal loan ideal for you. Further, it can be the right solution if you have urgent business requirements. A lender like Bajaj Finserv, for example, offers a Business Loan up to Rs.30 lakh in just two days. Read about this loan’s eligibility criteria here.

3. Choose a secured loan

When you need a bigger corpus of funds to invest in infrastructure and expansion, you can opt for a secured loan such a loan against property. Lenders like Bajaj Finserv offers Loans against Property at a nominal interest and a long tenor for amounts up to Rs.5 crore. You can mortgage residential or commercial property and get access to substantial funds to start or grow your business.

4. Use personal investments and the help of friends and family

Those closest to you are likely to believe and identify with your business vision the most, as compared to the outside world. So, they may be the right audience to whom you can explain your business goals and expectations. Talk to those who may have excess funds to invest, and see if they’d like to invest in your business. Remember to prepare the terms of repayment clearly, so that you don’t end up souring relationships with them in the future. Conversely, you can use your own savings and investments to start or sustain your business. This is a little risky, so make sure to create a separate contingency fund that you can fall back on.

How To Get Small Business Finance From Bajaj Finserv

5. Approach an angel investor or use crowdfunding

Leverage the right contact or search online to get in touch with private investors who are looking to fund start-ups like yours. You can either opt for a one-time investment in your business or a periodic investment to start or boost your business. Getting an angel investor on board means parting with a share of ownership or equity. However, this can work out for you based on the terms you agree to. Your other option is to crowdfund your business on Indian sites like Wishberry, Impact Guru, or Ketto. List your profile, goals, USP, plans for the future, etc., on a platform that supports crowdfunding. Based on how convincing your proposal is, you will get a pool of individual investors parting with small amounts of capital in exchange for either equity or a gift or product developed by your company. These five methods can help you source the funds your business requires. It is a smart practice to read up about all of them, shortlist a few options that work for you and be prepared for monetary needs in the future.

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