Have you taken an entry into business world? Want to know the best methods of raising capital? Don’t worry you have hit the right place as I’m going to shed light on the different methods with the help of which you can get an exact amount that you are looking for the kick start of the business.
1. Sell Useless Home Goods
I never suggest you to start grabbing fund from outside in the beginning. It’s better to first check what you have at home. Try to find all those items which are simply useless or can be categorized under luxury. I’m sure that you will find many items, now sell them at a reasonable price and collect cash.
2. Ask from Friends and Family
Friends can help you better than any outside lender. However, you must clear return period before actually getting cash, every term will be fully cleared. I often observe that loan amount becomes a cause of fight and misunderstanding among friends since we don’t care about terms and this thing creates problems. Typically, a friend or family member can provide you up to $1000 or even more. Don’t hesitate for borrowing money from a friend as their terms are simpler as compared to financial institutions.
3. Venture Capitalist
I think it’s one of the best ideas of raising quick capital. You can find venture capitalists anytime. There are many trusted websites that let you to meet with these investors. One drawback which stops most of the people from availing this opportunity is loss of control. These capitalist not only demands return but also wants some control. If you want to be a single boss all the time, you may like to skip this. My friend just started his locksmith business and he availed this opportunity. He often complains about the interference of these capitalists but now he can’t help it out.
4. Asset Based Debt
According to my viewpoint, a person must give a try to this lending. It’s quite similar to mortgage and even some of its terms are more flexible than mortgage. Your account receivable and inventory will work as collateral for the debt and if you are unable to pay this loan, definitely you need to compromise them. However, this loan is quite effective as you always have accounts receivable and inventory and this loan isn’t very high.
5. Credit Card
Although it’s not very powerful way of funding but yet it will work for you when you don’t have any other option. Withdraw an amount, invest it on business, earn from investment and pay a few dollars as an interest. As I mentioned earlier, my locksmith friend is also managing his recurring expenses of new business through his credit card. He earns from investment and pays monthly and in this manner, he is maintaining a good credit record.
We are living in the digital age where everyone is using interest either for promotion or for funding. So, you should give a try to this virtual market as there are a number of crowdfunding websites that allow you to raise capital in the time of need. Crowdfunding is a method where a community of different investors provides investment for the business startup and operation. A few examples of these websites are Buzzbnk, FanNextdoor, Chipln, 33needs, etc.
7. Peer-to-Peer Loan
This option allows you to become a member of a website and generates fund from the lenders. Websites like Zopa andFunding Circleare created just for the assistance of the business owners. You can develop direct relationship with lenders.
Now what are you waiting for? Go and give a try to any of above mentioned methods and generate enough capital for your new business house.