Which loans financially aid startups?
by Finway FSC Empowering People FinanciallyThe need of money is
the basic of any and every endeavor, whether profit or nonprofit. In case of
business a capital investment is a must. Firms with a solid commercial
background and popular brand presence can avail loans from any financial
institutes, NBFCs and banks without facing any kind of difficulties. However,
such is not the circumstance for a startup. Being a completely new
entrepreneurial initiative with no estimation of a positive turnover most of
the lending firms refrain from backing the endeavor because ROI is not guaranteed.
However, there are many financial tactics through which you can easily leverage
enough money to resource your startup and make it flourish.
But before we discuss
about the types of loans competent for funding startups we need to evaluate the
loaning options once. Since every startup is different from the other,
therefore before applying for a loan you need to take into consideration all
the metrics of the business need thoroughly. These factors are
·
You need to always keep a hard cash flow
upfront because in the initial stage of any startup money is of utmost
importance. So avail a liquid loan option.
·
But do keep in mind what is the rate of
interest and the terminal cost in the long term. Because very often than not
the burden of a long term loan is heavier than the apparent weight of a high
rate short term loan.
·
Take into account the equity amount you
have to sacrifice. If the share is too much then do avoid it.
·
There is the option of personal
guarantee too. If the business fails then you will have to pay for it
personally. In some cases it is good while in others it is bad.
Now let’s shed some
light on the best startup loaning options available in the market.
·
ROBS – rollover for business startups is
the process to invest retirement money on new startup.
·
Home equity loan – if you have availed a
home loan in Delhi
then you can use 20-30% of the home equity on funding the startup.
·
Business credit card – used by owners
with good credit score.
·
Instant
personal loan – with good credit score you can get a personal loan in Delhi
and invest it on your startup.
·
Equipment financing – loan for buying
equipment only.
·
SBA loan – a good debt history is the
only requisite.
·
Microloan – available to reserved
category people with startup plan
·
Governed grants – for funding the
progress of the nation.
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Created on Jun 18th 2019 23:51. Viewed 450 times.