Need money for your business? Here are your 9 options

Need money for your business? Here are your 9 options

Bootstrapping

Bootstrapping

MSMEs can start by using their own savings and profits generated from the business to fund growth. This approach avoids taking on debt or giving up equity

MSMEs can start by using their own savings and profits generated from the business to fund growth. This approach avoids taking on debt or giving up equity

Traditional Bank Loans

MSMEs can approach banks for loans. Many banks offer specific loan products tailored for MSMEs for working capital, equipment purchases, or other business needs. Ensure you have a well-structured business plan and collateral if necessary

MSMEs can approach banks for loans. Many banks offer specific loan products tailored for MSMEs for working capital, equipment purchases, or other business needs. Ensure you have a well-structured business plan and collateral if necessary

Initial Public Offering

Initial Public Offering

The Emerge index of the National Stock Exchange and the BSE-SME of the Bombay Stock Exchange provides an opportunity for SMEs to list their company and raise funds through the issue of shares for public offering

The Emerge index of the National Stock Exchange and the BSE-SME of the Bombay Stock Exchange provides an opportunity for SMEs to list their company and raise funds through the issue of shares for public offering

Equity Investment

Equity investment is selling an ownership interest in exchange for capital. The risk gets shared, and unlike loans, this is not a liability. Also, the investor takes a long-term vision and understands the business

Equity investment is selling an ownership interest in exchange for capital. The risk gets shared, and unlike loans, this is not a liability. Also, the investor takes a long-term vision and understands the business

Invoice Financing

Invoice Financing

MSMEs can sell their unpaid invoices to a third party at a discount, which provides immediate cash flow. This can help bridge the gap between completing a sale and receiving payment

MSMEs can sell their unpaid invoices to a third party at a discount, which provides immediate cash flow. This can help bridge the gap between completing a sale and receiving payment

Grants and Competitions

Grants and Competitions

Look for grants, competitions, and business plan contests that offer cash prizes or funding opportunities for MSMEs in your industry or region

Look for grants, competitions, and business plan contests that offer cash prizes or funding opportunities for MSMEs in your industry or region

Strategic Partnerships

Partner with larger companies in your industry that may be willing to invest in your business or provide access to resources and customers

Partner with larger companies in your industry that may be willing to invest in your business or provide access to resources and customers

Online Lending Platforms

Online Lending Platforms

Several online lending platforms and fintech companies offer quick and flexible financing options tailored to MSMEs. Be sure to research the terms and fees

Several online lending platforms and fintech companies offer quick and flexible financing options tailored to MSMEs. Be sure to research the terms and fees

Family and Friends

Family and Friends

If possible, consider borrowing from or taking investments from trusted family members or friends. Ensure that any such arrangements are documented professionally

If possible, consider borrowing from or taking investments from trusted family members or friends. Ensure that any such arrangements are documented professionally

Image: Pexels

Image: Pexels