When you start and expand your business, it comes with its own sets of risks and opportunities. Those who are just starting out their business need to find a way of funding so they can go on for a long period of time.
During the initial stages of your business, it is important to keep going on, and for that, you need funding. Business loan lowest interest rate helps during this time. There are different types of loans, and the interest rate depends on various factors such as credit rating, types of business, type of lending authority, and amount of loan and market trends. The type of loan you take can either be short-term or long-term, and it needs to be renewed after a certain period of time.
Let us now take a look at the list of funding options available for your business.
- Angel investment
By angel investment, we mean investors with surplus cash who are interested in investing in startup businesses. These investors also work in a group of networks to screen various proposals before the investment is made. The investors can also offer mentoring along with advice. Some of the biggest companies right now have been established with the help of Angel investment. Most of the time, the angel investors would invest in the early stage of growth in the business and also expects equity of 30%. They are known for taking more risks for a potential higher return.
- Microfinance Providers or NBFCs
Many times people do not qualify for bank loans. In these cases, there are other options available as well. By microfinance, we mean access to financial services to those who do not qualify or have the option to get a loan from the bank. It is important to check the business loan eligibility before you try to get a loan from the bank. Those who do not meet the criteria provided by the bank have started to opt for microfinance, and it has gained popularity over the years. Another corporation from where you can get the loan without meeting the legal requirements of the bank is Non Banking Financial Corporation.
- Cloud funding and crowdfunding
By cloud funding, we mean pitching your idea on the internet and a number of investor groups looking at it to finance your business. On the other hand, crowdfunding is a small group of small business financing individuals that helps different business ideas in reaching out to different investors through various platforms. The investment can be of two types – equity or debt. You can also find different types of crowdfunding website that offers rewards in exchange for investments. With the help of crowdfunding, you can reach out to a pool of investors and don’t have to seek a big investor.
Those who are planning to grow with their new business need to find an outside source of capital. With a business loan low interest rate, you can start your new business and expand to reach a greater goal. There is various type of funding, and we have discussed a few in this article. As you get a plethora of lending options, it is easier to get started with your new business. Make sure to go through the funding options discussed above if you want to fund your new business.
For hassle-free financing and minimal paperwork, you can apply for an unsecured business loan from Bajaj Finserv and get instant approval.
