Most of the time, small business owners struggle to kick off their business due to funding issues. For this reason, they lag behind and always think over before starting the business in the first place. But with the help of loans for startup businesses in India, it becomes easier for the new owners to get the business off the ground.
There have been various studies that suggest that over 90% of businesses fail during their first year of operation. One of the major reasons for the failure is the lack of funding. We all know that money is the bloodline of any business. Hence to make a business run and grow, it needs to have a regular cash flow. One of the easiest ways to get funding is through a loan for startup business in India. Let us see what other ways startups can get funding.
- Angel investors
Angel investors are those who have lots of money and see the potential in small businesses to invest. But the angel investors would still invest in the hopes of higher returns. Most of the startups have the option to get in touch with these investors directly through online portals. Also, keep in mind that if the angel investor likes your proposal, then they will offer to mentor along with the loan amount.
One of the best ways to start a business is through self-financing. If you have the financial capability to invest in your business, it will help you yield high returns once it succeeds. Many people often get scared to invest their savings, but taking this risk can help them get a higher return. This way, they do not have to worry about how much capital they can get from investors or about the business loan interest rate.
By crowdfunding, we mean businesses are getting a loan for startups in India by connecting with different investors through social media platforms. For different social causes, crowdfunding websites raise money such as charities and relief for disasters. This way, startups can raise their funding through crowdfunding and get their business going on.
- Loan through government schemes
The Government of India has introduced various loan schemes in recent years dedicated to startups. By opting for this loan, people can start off their business. The government also urges women to take the leap and start their own business, for which they introduced an individual loan system.
- Loan from banks
One of the best ways to get a loan for startups is from the bank. Bajaj Finserv has amazing loan schemes dedicated to startup owners. You can visit the bank and talk about the investment amount required. If you fulfil the eligibility criteria, you can easily get a loan from the bank.
- Loans from NBFCs
Apart from the bank, startup owners can get their business loans from NBFCs. Those who are new to the business sector and need urgent funds can also reach out to the NBFCs and get instant funds.
- Business credit card
This has gained popularity in recent years. The business owners would use the credit card to pay off any important payment or use the card to purchase important equipment for the business. This acts as a form of loan that needs to be paid within the time.