What are the sources of capital for a business?
- Thread starter Reedex
- Start date
Apart from saving your income, there is no other way I find quite promising. I always advice people to avoid loaning money from the bank or any other financial institution to start up a business. It is very risk because you can not guarantee the success of the business.
Some people also have jobs they do even if they are running their businesses. They may be getting salaries from their jobs and be growing their main businesses.
Working somewhere while running your business is not wise enough. You won't be able to give it 100% attention needed. And the person recruited to run might not qualified enough.
This is correct but it depends on the kind of business you are running. if you can also see a family member who will help you to run it then that will be a better option.
There are some micro finances banks that will give loan without collateral.
- Thread starter
- #27
I have tried out a particular crowdfunding platform in Nigeria but it never worked out because I noticed that it later ended up in scams.
then there is something they will get in return. I don't think anybody will give you a loan without any kind of collateral. If they do that they will be at risk.
Many people fall into this traps as set out by many loan apps on playstore who promised flexible loans and grants without collateral. They asked the applicants to submit their banks security details. Eventually, the applicants were defrauded.
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It is good when you start business with your money as capital. It gives you rest of mind and proper concentration than borrowing loans on business you have just started.
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that is actually very true. If you have experience about running a business you can take a loan. Some of the big business ventures you see today started with loans.
Loan is not the way to start a business with because it is very risky instead go for other ways.
it depends on how experienced you are about a business venture. There are people who use loans to make success in business.
No there are no collateral. All they need is someone that will stand for the person.
that is a surety. it is also a form of collateral because if anything goes wrong the person will be caught to pay the money.
You can also reach out to family members for support, reliable friends and also borrow from someone you know that can give you money irrespective of when you pay back
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And also reach out to banks that don't have much interest rate
Don't you think taking money from such people will make you to be very much reluctant?.
