Ways to raise money for your business other than your own money


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Posted by on Sunday June 15, 2014 at 13:34:52:

When it comes to starting a business, one of the things that discourage most people is Capital to start and run the business.

Apart from human resources, capital is the next most important aspect to consider when starting a business. Capital in this context has to do with both the raw cash and other machineries required in running a business. In this article, I will mention some ways to raise capital for business apart from personal savings.

- Borrowing From Family and Friends: This is one of the easiest way to source for capital. If you have well to do friends and family members, you can share your business idea with them and ask them to invest in the business or give you a loan which you will pay back after sometime. Why I said that this is the easiest way to raise capital is because, you donít have to present collateral for the loan, since they are family and friends.

- Loan From Bank: Though collecting a loan from a bank requires a lot of formalities and you have to keep collateral that is worth more than the amount you are borrowing, it is a good way to raise huge cash for your business.

- Angel Investors: Though this is not that popular in this our side of the world, there are people who call themselves angel investors, all the do is scout for good business ideas and invest in the business. They share the profit with the owner of the business later. If you know an angel investor, he can choose to provide all the required funds for the business.

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