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Small Business Financing

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CIOL Bureau
Updated On
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BANGALORE, INDIA:

All Small Business Financing requirements are fulfilled from one or more of 5 different sources.It usually takes the owner(s) of the business to invest their own capital, before any of the others can be made to happen.

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1. Investment Capital from yourself, family or more formal investors such as business angels or shareholders.

2. Small Business Loans from any traditional financial lender - comes in a number of different formats.

3. A loan from a Peer to Peer lending organisation.

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4. Proceeds from Small Business Start Up Grants or any of the other kinds of Small Business Grants

5. Profits of the business.

Also read: Fin Min Okays tax sops for manufacturing sector

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Key small business financing concepts

  • If you intend to use any funds raised for a long duration (e.g. purchase of property), then you should match funding to a source that will last the same duration (e.g. Commercial Mortage)

  • Aim to raise your sources of finance in a balanced way using a combination of business finance products and providers to reduce risk and avoid endangering the long term viability of the business

Source: www.smallbusinessfinancetips.com