Finance Different ways to finance your business personally

Augusta

VIP Contributor
When it comes to funding or starting a business, financing from your pocket is the most way you can achieve it. It is always better to start by looking inward and see if you can start your business with what you have than thinking of borrowing. The truth is that it isn’t even advisable to start a business on a loan. So what are the different means you can use to achieve self funding?

Personal savings:

This is the first place you need to access to be sure; you have the money to start the business you desire. Check your saving, current or fixed deposit accounts. Maybe you might need to combine the three to know if you are go ahead with your business

Credit cards:

You have your credit card, you can go this route and find out if you can use it for your business needs. If it is possible then you should go on to help yourself start your business

Retirement accounts

You can self fund your business via your pension account like your IRAs or 401(k) accounts. You can get these monies to finance your business so you would need to find out if you are eligible

Crowdfunding:

You can crowdfund to raise the money you need for your business. So you can direct your friends, family or any individual to the crowdfunding site to donate to start your business

Home equity loan:

Yu can tap into the home equity you have to finance your business

What do you think?
 

Mataracy

VIP Contributor
All this method is very good to use in financing your business.
One can also obtain the money from family and friends.
One can borrow loan from bank but not the loan with high profit
One can can also raise money by oneself to finance the business. These are the ways to finance the business.
 
OP
OP
Augusta

Augusta

VIP Contributor
All this method is very good to use in financing your business.
One can also obtain the money from family and friends.
One can borrow loan from bank but not the loan with high profit
One can can also raise money by oneself to finance the business. These are the ways to finance the business.
Yeah there are numerous ways to self fund your business, it mustn't be loan with high interest all the time especially when you are starting out it can be frustrating when you can't even get the business off the ground but the the loan money is almost gone so it better to look imward and be sure you have exhausted that avenue before trying other ways.
 

sincerem

VIP Contributor
Crowdfunding, personal savings, and retirement benefits etc, are simply the best way for me when it comes to starting up a business. I never liked loan, due to its repayment interest that is always set higher. If I manage to get a lower interest rate for a loan, then surely I'll go for a loan option, because it will give me quick cash to start up a business without waiting for long to get a business capital from my personal savings. But such is not feasible because loan companies are simply over demanding of repayment charges, that's why is not an option for me.
 
OP
OP
Augusta

Augusta

VIP Contributor
That's why I didn't include the loans from bank because you might just be getting or starting from a wrong footing it is good to self fund your business fora start the. go for a loan when you have gain some footings. maybe go for a loan with a longer duration repayment plan of time
 

Good-Guy

VIP Contributor
I would never recommend anyone to use credit cards because excessive usage of credit cards might lead to bad debt. many people buy excessive items using credit card and this also leads to an increase of the interest payable on credit cards that might lead to excessive debts gradually. Moreover, many banks also increase the interest payable rates annually and this can also cause bad debt. It is far much better to start a business using your own funds or savings. you can start small rather than taking loans.
 

Augusta

VIP Contributor
Well I think the credit card for business startup is a lot better than spending it on frivolities, so if I should advised any one I will write to use the credit card for business if goven the opportunity. yeah I agree with you it is a lot better too to get funds within than going to any bank for loan
 
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