Offbeat Financing Options to Start a Small Business
If the idea of a typical office job makes you feel suffocated and you believe in the saying of the sky being the limit for growth, then starting a venture can be the right thing for you. However, financing is a prerequisite for starting a new business, even a small one. The nice thing is nowadays, and you can opt for unconventional financing options for beginning a venture. There is no need to put up with the whims of banks.
Exploring the offbeat financing options for small businesses
There was a time people with entrepreneurial spirits approached typical banks for financing needs. However, things have changed for the better, and nowadays, you can choose from a wide range of offbeat financing options. The nice thing is these alternative financing options are easier to avail.
- NBFCs- There are many NBFCs that offer loans to small venture owners. They do not take a long time to process the applications, and their requirements are less steep compared to the banks. However, they may charge steeper interest rates, and you have to look for the loan repayment terms.
- Partner financing- In this process, you get a loan for setting up your small venture from an established player in the industry. Partner financing is usually good as the small company can gain from the bigger one in many ways.
- Venture capitalists- They own a part of your venture, and you are offered the capital for that. The entrepreneurs who opt for a VC do get not only access to the money but also gain industry expertise and connections.
- Angel investors- Angel investors are not exactly like venture capitalists. An angel investor is not a company but an individual. The angel investor also guides the start-up owners in many cases. Such investors prefer investing in small ventures, usually.
- Crowdfunding- This is a process in which funding is gathered online through advertising for a cause. The online platforms enable businesses to get small investments from several investors and not a single source.
- Grants- Businesses dealing with important research or studies may be able to obtain grants from the government.
Summing it up
Checking out the alternate finding sources for starting your small venture is a good idea. However, you have to find our details about the credibility and safety of choosing such financing sources. The terms of loans have to be assessed well. Click for more info on these topics.