It takes money to operate and expand a business. The types of business you embark on determine the amount you would need. Some business needs more money than others. Business may need money to purchase equipment, make an advertisement, renovation of rented space etc. It is often challenging for a young entrepreneur to find the money needed to operate or expand a business. We shall attempt to identify where you can source for funding to help in any business venture you hope to embark on in future.
Some sources of capital: there are many viable sources of capital. If the money you generated for your business is not a gift, then it is either a debt or equity.
We can source funding from the following:
1. Banks and credit agencies
2. The family and friends
3. Angels and venture
4. Minority Financing Sources
5. Small business investment companies, government agencies etc
Banks and Credit Agencies
You can get funding for your business from banks or any credit agencies within your area. The bank is a known a place to get funding for your business, though sometimes it may appear difficult to get a loan from banks. Banks are more willing to lend their money to bankable individuals than young entrepreneurs. However, as a young individual, you can still get a loan from Bank if you have a collateral like land, house etc or if you have somebody who can stand as a surety for you.
Note: before you head over to the bank to borrow money for your business, ensure that the business you want to do is capable of generating enough profit to pay back the loan.
The Family and Friends
Some businesses get their first financial help from the family and friends. When taking a decision on how to finance your business, pay attention to legal implications that might apply.
Angels and Ventures
Angels are big private investors who look to finance start-up ventures.
Minority Financing Sources
Minority financing sources include small firms and individuals who may contribute both financially and otherwise to see that your business is successful. As a result, it is important that you talk to some financially capable individuals and firms about your business. If your idea is a promising one, they will definitely offer to help.
Small Business Investment Companies and Government Agencies
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You can get funding for your business from Government agencies and small investment companies. These bodies usually give out loans to small business owners for free (without collateral).