Vadodara owes much of its prosperity to the small and medium businesses that have been established here over time and there are many new entrepreneurs who are interested in taking their business to the next level. Establishing a new business and then expanding it, both requires sufficient amount of capital investment but an SME might not have that kind of money.
However, thanks to business loans in Vadodara available for leading banks and NBFCs like Bajaj Finserv, it is now possible to fund one’s business with ease. There are a few other ways of getting business funding as well. They are as follows:
- Credit Card loans: Opting for a credit card loan is an easy way to get business funding and one requires a credit card to avail this loan. However, the loan limit will only be till the upper limit of your credit and only the balance amount that you have not utilized yet. Credit card loans can be risky though because falling behind on payments mean that your credit score is going to be seriously affected. Making just the minimum payments each month could also get one into a loan trap. However, used reasonably and for small sums, it can come in handy when the business is in need of some quick cash.
- Small Business Loans: This is the safest and most secure way to raise money for your business. There are many government schemes and policies in place which now enable SMEs and MSMEs to raise money for their business. As mentioned before, banks and NBFCs like Bajaj Finserv have low business loan rates and flexible repayment options that will enable many small businesses to comfortably pay off their loan over time. The quick business loan amount can be as high as Rs 30 lakhs, based on the eligibility of the person and it is often more than enough to cover the costs of setting up a small business.
- Crowd funding: Crowd funding has been a popular way of raising money for businesses and there are now many online platforms as well which are bringing like- minded people closer than ever before. In crowd funding, many people pledge money for a purpose and there are often some small returns to be enjoyed. Some crowd funding ideas go on to become good partnerships in the long run with all the parties involved reaping the benefits.
- Looking at Non- Profit Organizations: Non- profit organizations will often use their channels to raise money for a business, especially if the business can help with some environmental cause or social issue. At times, small businesses employ destitute women for workers or the business uses recycled goods to produce their commodities. Such acts of empowerment can affect the society in a positive manner and Non- Profits often help such causes.
- Raising Money with Friends and Family: This is one of the easiest ways to raise money and friends and family are always present to help out. However, it most cases, this means the depletion of personal funds and if anything goes wrong with the business, then one has to deplete their own cash reserves as well. This could lead to a lot of additional financial burden so personal funds should only be put on stake if one is absolutely sure about the positive outcome of the business.
When used wisely, these methods of raising funds are often enough to help raise money that will set things in motion that is sure to lead to a successful business.