Explore small business finance options: Fast track your goals with multiple finance options
Are you looking for finance options to finally kick-start your small scale business? Well, facing trouble in finding the best source of investment for your small business can be a daunting task. But, not anymore!
Let’s take you through multiple options to finance your small business, the pros and cons, and detailed guide and instructions for the same.
Before jumping to any conclusion, understanding what complements the situation better is integral.
Friends and Family
Many small business owners look out for capital amongst their close ones. While there are expectations and threats of letting people down, setting realistic ground rules can live up to the expectation making it a viable option on a short term basis.
While asking from close ones might sound like a better and accessible option, remember that relationships have a defined line, and anything should not happen without mutual consent and agreement.
Personal Credit
Checking on a credit card or overdraft balance can be a probable option. Compared to applying for a loan, this is a much quicker option. But do not neglect the maths to ensure the returns on your investment. Interest can create trouble in the future that needs consideration. Keeping a bulk amount in your business account is a wise option rather than spending them here and there.
Startup Loan
Startup loans are initiatives from the government whereby a business operating for less than two years can apply for it. The one important requirement is to have a limited trading history for falling under the new business category and availing a loan of Euro 500 to Euro 25000. Preparation of a decent business plan and financial projection is required. And, with all of this, you can apply for a startup loan along with a free mentoring session.
Grants
Getting something for free doesn’t seem to come very easy. Getting grants for your small business could be a dream, but it doesn’t come as easy. It requires special initiatives like special objectives, transforming to digital platforms, or some environmental and social steps. Sources from where you can get Grants include government, certain business hubs, the EU, private funds and local authorities. In case you find a grant, the next step is to prepare a strong business case for a better impact.
How can you be a responsible borrower?
Before borrowing a sum, it is important to have the right intentions and carry responsible behaviour.
Let’s look at ways with which you can become a responsible behaviour:
- Borrow a sum you can responsibly repay, including interest charges
- Look at your objective and then borrow a fund rather than borrowing as much as it is coming
- Choose affordable repayment options
- For all informal borrowings, ensure that everything is properly documented.
We at FinBridge help you establish a sound functioning business environment through our tax and accounting services. Contact us to avail our services now!