Almost every day, people come up with so many lucrative business ideas that they really want to get started right away, but mostly they have issues and problems with the specific amount that is needed as capital to start the business. Getting capital for a new or old business is quite difficult especially here in Nigeria where the economy is very unstable and unpredictable. Here are 7 ways to source capital for your business:
1. Personal savings
You can generate capital from your personal savings, that is, money that you have been saving a few times to start something with it when the money must have reached a certain amount.
2. Bank loan
You can raise capital from the bank, i.e. get a loan from them, but there are so many processes and conditions involved. First, you need to share your business idea with them so they can determine if the idea is profitable enough to risk lending their money. Second, you need to have collateral before the bank will give you a loan, meaning something they can hold onto if you don’t pay as promised or when it’s due, and also remember to pay it back with interest based on your interest rate. .
3. Angel investors
These are entrepreneurs who sponsor and finance business ideas with their personal money, to help get their ideas off the ground if the idea is good enough but they do so with some conditions, i.e. there must be some sort of agreement between the two parties. .
4. Cooperatives
One of the best ways to generate capital is to collect from the cooperatives to which you belong. The cooperative is an organization body with members who contribute money monthly, weekly or daily at the end it will be given to the person who must collect at that time and the person will still pay it back with a little interest and it’s like this for everyone in the cooperative.
5. Grants
A grant is a stipulated amount of money given by the government, organizations or an individual, to help business owners finance and promote their businesses. An appointment, requirement, qualification, or even a presentation may be required to determine the eligibility of those to whom the grant will be awarded.
6. Crowdfunding
This is a process by which one sells their business ideas online or offline and someone can buy the idea and finance it with an agreement with the owner of the idea.
7. Sale of assets
You can also sell your valuable assets and raise capital for your intended business.
Also Read: How many jobs are available in capital goods
