There are thousands of new startups who are not able to move beyond the first few months as far as they are concerned. This is because of lack of funds as a startup organization. Hence it would not be a bad idea to learn more about ways and means by which one can find out avenues to find sources of funds for their startups. Let us learn more about it over the next few lines for the benefit of our readers and also for those who are keen on starting up their own ventures but are struggling to find ways and means by which they can raise the required amount for their startups.
Loans, Credit Cards & Other Borrowings
This perhaps is the simplest and most sought after way when it comes to borrowing funds for your startup organization. If you have a good credit history you can borrow a few thousand dollars in your name and if you are working as partners, the others can also use the same method to raise the required money for starting up their business venture. If you look around there are many websites where you find lot of information. Hence it would not be a bad idea to discover this info here. You also could borrow against your credit cards but you must do it with caution given the fact that it is extremely expensive and the interest rates might simply pull you down quite a bit. You also could look at other less expensive methods such as second mortgage on your homes and raise some low cost loans. If you have some jewelry you also could mortgage the same and this also could be a low cost avenue to raise enough funds for your start up.
Savings
If you are a prudent person and believe in savings it is quite obvious that you could have some big money saved over the years. The same could be investing in your startup venture. This could be a very good move because you would not be burdened with heavy interest costs which often are the case with credit cards, personal loans and even mortgage loans. But you must be careful to set apart some savings for emergencies and should not empty out the entire thing.
Crowd Funding
This is one of the most common ways of funding for startup organizations. If we look at the history of some of the most successful companies, it is quite obvious that most of them would have received significant amount of money from these crowd funding organizations. The interest rates are nominal and they would ask for a share in the profits of the new startup company and this could vary from 5% to 10% depending on the type of company, the loan amount and so on.
Read More →