There are different sources to obtain capital to start up a business. You could approach the bank to obtain loan, you could also go to a crowdfunding platforms for capital to startup. I do not like to obtain loan to run a businesss most especially if it is a new one. Using the crowdfunding platform is preferable.
What are the sources of capital for a business?
- Thread starter Reedex
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Banks won't give you a loan if your business is still starting up, if you go to a crowdfunding platform, you must register your business profits either in writing, pictures or videos. including business prospects, business types, management processes, marketing and business objectives. The risk in crowdfunding is that your business idea can be stolen by the capital owner.
Probably, banks only give loans to successful businesses that wants to expand. Except you have a very good collateral they will not even consider such option.
Probably, but some banks will not agree to give you loans if you are an enterpreneur especially when you do not have a collateral. Taking loans from traditional loan vendors may be the alternative.
There was a popular crowdfunding platform in Nigeria before it shut down but it is a good way of getting capital for your business and another form of capital is to save money and use it to start a business
What actually shut the crowdfunding platform down?. Don't you think there is some kind of scam involved in it?.
You are even lucky that you never paid money to be a member, if not they could have scammed you. I don't like such platfforms actually.
I don't think it is actually bad for you to take a loan whenever you are going into a business. But you just need to have proper knowledge of the business.
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I am not also against that. But what if the business did not do well, then how are we now going to pay back the loan in time?
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you must have a collateral before you take any kind of loan. There is no financial institution that will give you a loan without that.
There are a lot of ways to source for capital but I prefer taking from my savings
sometimes you may not have enough savings to venture into a business. It may be a good option but most people do not have that savings to venture into their dream business.
Getting from family and friends is another good way or loan that have a low interest rate
Yeah, getting from family and friends is actually one of the best option for anyone that wants to go into a business. If you have family members that have such money you will be lucky.
