The difficult procedure of obtaining capital makes it impossible for new enterprises to survive. Many entrepreneurs, on the other hand, make the error of concentrating their efforts on a small number of funding options when there are many more available.
According to a recent survey, almost 94% of new firms fail in their first year. One of the most prevalent causes is a lack of funds. Every company’s lifeblood is money. The lengthy and arduous road from concept to revenue-generating firm necessitates the use of cash as a fuel. As a result, entrepreneurs question themselves at practically every stage of their business, “How can I fund my startup?”
1. Angel Investor
Individuals with surplus cash are known to be Angel investors and these individuals are interested in investing in new start-ups in India, as well as worldwide. The risk involved in these investments by Angel investors is more, as compared to loans offered by financial institutions, as Angel investors plan to invest for higher returns to profit. India’s popular Angel investors include Mumbai Angels, Indian Angel Network, and Hyderabad Angels. Start-up owners can directly get in touch with these investors for funding support.
2. Equipment Finance
Equipment is critical to a company’s success and growth; a lack of it might make it difficult for a new company to compete. Using a lease or loan to borrow or acquire assets, whether it’s a restaurant appliance or a transportation vehicle, is what equipment finance is all about.
It’s a great way for companies to stretch the expense of an asset over time. It’s also great for high-tech firms whose equipment quickly becomes outdated. It’s not financially practical to continually selling old equipment and buying new ones in this situation, thus equipment financing is a reasonable choice.
3. Apply for Loans under Government Schemes
The Indian government has launched a number of loan schemes aimed at assisting start-up businesses, SMEs, and MSMEs, as well as promoting rural India’s socioeconomic growth, women entrepreneurs, educated youth, individuals from the SC/ST category, Small Scale Industries (SSIs), villages, and people living in rural and urban areas. The MUDRA loan scheme under the Pradhan Mantri Mudra Yojana (PMMY), Start-up India, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Stand-up India, Atal Innovation Mission, Make in India, Trade-related Entrepreneurship Assistance and Development (TREAD), and other loan schemes launched by the Indian government to assist start-up businesses include the MUDRA loan scheme under the Pradhan Mantri Mudra Yojana (PMMY), Stand-up India.
4. Take advantage of Business Credit Cards
Since the growth of start-up businesses in recent years, the use of credit cards for commercial reasons has increased. If your business does not require huge sums of money in the early stages, you may utilise credit cards for transactions and clear the balance on time to prevent debt or additional interest rates paid in the form of penalties.
5. Borrow money from both Private and Public Banks
For start-up businesses, banks are the first port of call since they find them to be a more trustworthy and easy source of funds. Term loans and working capital loans are two types of loans that banks offer to start-up businesses. Almost every Indian bank, both public and private, provides start-up financing. Interest rates, loan amounts, and payback terms vary per bank.
6. Crowdfunding
Crowdfunding is a concept of collecting funds from multiple investors via social networking sites and web-based platforms for majorly business purposes. Online Crowdfunding web portals raise funds for various other purposes like social causes, charities, ideas, disaster relief, events, etc. This concept or idea helps in raising funds for start-ups or first-time business owners and also promotes social and cultural causes.
7. Peer-to-Peer Lending
Peer-to-peer lending is a sort of money lending in which there are no middlemen engaged in the transaction. Lenders give money to borrowers as an investment, while borrowers get funds to invest in their new business. Lenders can profit from borrowers in this process because the interest rate offered is higher than that of banks, NBFCS, and MFIs. The RBI regulates peer-to-peer lending institutions for the benefit of both lenders and borrowers. Peer-to-peer lending is a sort of financing for start-up businesses, but it is an investment for lenders.
8. Bootstrapping
Finally, if you have the financial means, you may always fund your company concept yourself. This is the most frequent approach for people to obtain capital for their business, and it shows investors how serious you are about your project. It also indicates your willingness to take chances because everything is on the line.
If you can put your money and assets into your firm, you may gain a lot of advantages. You can keep control of your company and won’t have to hand it up at the premium phases, which isn’t achievable with other funding sources like venture capitalists and angel investors.
Where to get Startup Capital Loan
1. Omozing
Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . Currently, we are offering We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that be tracked online.
- Short Term Loans for working capital needs
- Medium Term Loans for various business needs
along with ITR Saral Copy, Computation of income statement, Balance sheet, P&L, 3 CA , 3 CD Audit reports along with all schedules.
Omozing Business Loans based on the following:
- Unsecured Working Capital Loan
- Microloans
- Invoice Discounting
- GST Surrogate
- Revenue Based Finance
- Banking Surrogate
5 Reasons to choose Omozing
1. Business Loans from INR 1Lakh to INR 1Crore
Business Loan Interest Rates starting from 0.8% p.m, and Loan amount ranging from INR 1 lakh to INR 1 Crore. The Minimum and maximum repayment period ranges from 1 month to 48 months.
2. Cutomised Tailor Options
- Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.
- You have the freedom to utilise your loan anyway you want, whether for business or for immediate personal needs.
- Flexible repayment options depending on your specific cash flow and budget, as well as conditions that is beneficial to your position.
3. Lower CIBIL
While most lenders require borrowers to have a CIBIL score of over 750, at Omozing.com provide loans even with 600. Besides the CIBIL score, we also considers your age, employment status, and net monthly income.
4. Ways to apply
You can apply for a business loan through us by 2 ways:
1. You can download our Mobile Application from Google app store.
2. Apply on portal using out Business Loan link
5. Prompt Loan Disbursal
An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.
2. FundsTiger
FundsTiger is a popular online loan platform. Our consumers come to us for their money requirements, whether they are short-term or long-term, small-ticket or large-ticket, personal, family, or business. FundsTiger team brings a wealth of international financial knowledge to the table and tailors it to your specific needs. Money advice, credit advice, wealth planning, and, of course, credit are all available to our clients.
Faster Funding – We are over 80% faster than most traditional banks and lenders
Total Focus on Your Wins – We leverage our technology and business expertise for your financial success.
Customized Loans – We can structure and customize loans for your unique needs
Customer needs in Forefront – Your needs are our priority. We promise to deliver you with services that are best on our capabilities. By handpicking the personal loan offers based on customer profile, we try to give you the most personalised experience.
Support you can rely upon – Monitor your loans 24/7 and reach out to a super-responsive support service
Relationships, not Borrowers – We believe in building relationships, not just lending to borrowers.
More Value for Money – We offer the best value for money loans when compared to all our competitors
Real-time Customer Support – Our customer support team is fast and efficient to clear all your doubts regarding personal loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.
Cutomised Tailor Options – Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.