Finance What is the best source of capital for business?

kayode10

VIP Contributor
Raising a business capital is one of the hardest jobs of an entrepreneur. it is very difficult to secure a huge fund to kick-start a business in the present economy when everybody is complaining about paucity of fund.

But there are different type of ways in which someone can raise capital for one's business.

Raising capital from friends and family is one of the common ways in which business owners raise fund for their business. they simply approach them convince them to invest in their business.

Another way is to raise capital from financial institution for your business. This is one of the ways to secure his phone for your business if you eventually succeed in the process.

Another way is to go through the avenue of venture capitalist who will help you to contact angel investors. You only need good presentation skills to win the Angel investors over to invest in your business.

Another way is to engage in savings but this is one of the slowest way to raise capital for your business.

all of them have their advantages and disadvantages. So I want to ask that what is the best way to raise capital for business?
 

K-factor

New member
@kayode10 If you’re looking for ways to raise capital for your new business, Raising capital through friends and family is a viable option for many. If your business isn’t operating in an industry that requires lots of startup capital, like manufacturing or transportation, you can potentially fund your own venture and it may be more feasible than you think..

Applying for a loan is also a good ways of raising capital, traditional financing products remain the primary way small businesses fund their operations.
 

Abigael

Valued Contributor
For me, I think using your savings is the best way to start your business. This is because first, you will not be owing anyone money and secondly because you won't have family and friends asking for shares in four business or taking things for free just because they helped you raise the capital.
 

Jasmine

VIP Contributor
If you are planning to start business that does not require a lot of money, using your own savings is the best source of business capital. Even if your business fails, you will not have any outstanding loans because you used your own money. However, before you can use this method, you need to have a saving.
 

Good luck

Verified member
If you are starting a business and you don't have any cash at hand,i think the best option is to apply for any online loan that you think is very reliable and will not charge interest on capital and the refund will not be stressful.One can start with that pending the time the person will be able to stand to finance the business.
 

btaliat

VIP Contributor
Though there are many ways opened for an individual who wants to source his business but the easiest one is personal saving. This one will come with no much problem. Someone that finances his buinsess with loan or any other means may be disturbed by those people that helped him.
 

Good-Guy

VIP Contributor
I have always believed that the best way to raise the capital for your business is to earn your own money and then invest that money into the business you plan to run. It is never a good idea to wait for business grants to get approved or apply for a grant or borrow loans in order to start a business.
 

Mandy96

Valued Contributor
Let me start by saying that our lives are different, but if you happen to have a job that pays good, you can save up money from that and use it as an advantage to start up a business for yourself. You can also try out using a loan to start a business, but depends on some certain condition, ones like if you have a collateral that is worthy of the type of amount you want to borrow to begin it. You can even sell a property if you have, but you must be very certain that the investment you want to use it for will definitely bring income and profits for you
 

Yusra3

VIP Contributor
The main source of capital depends on business level, any requirements, and it's anticipated growth rate. Venture capital, seed rounds, ASCENT 2.0, friends and family investments, and angel groups are some of the early sources of finance for startups The case with established businesses is that they may choose bank loans, loans of credit, venture capital or take a public offering. In the long run, it is advisable to immediately raise diversified funding at low costs to avoid issues like expensive loan, over-dilution to the equity levels and tight control on the equity ownership. Businesses have to see to it that they go for the appropriate and long-term financing, making a clear decision between these alternatives.
 
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