Financial constraint has been a great impediment to business establishment, growth and development.
Procurement of loans are getting more difficult as the day goes by due to high demands from entrepreneurs. Nonetheless, in the heat of the difficulty, there are a number of proven sources of loans acquisition.
1. Family And Friends
Family and friends is the surest way of acquiring small loans. Before one should consider banks and other institutions, there is a need to source for capital within closest circles. One of the benefits of this is that there will be no need for collateral.
2. Financially Buoyant Individuals
There are host of financially established individuals who are seeking to diversify their investments. All they need you to do is to convince them about the viability of your business proposal and they will plunge into it.
3. Cooperate organizations
Apart from individuals, cooperate organizations are also good sources of loan. It’s not really in the habit of some organizations to give out loan, but with the right interest and collateral, they can provide a helping hand.
4. Religious Organizations
A number of entrepreneurs have benefited from loans and grants from religious organizations like churches. Most churches have set up committees that train members and provide other necessary entrepreneurial assistance to them.
5. Initial Public Offer (IPO)
Going public opens your business to thousands and millions of investors. This is for already existing businesses. For instance, Facebook had its IPO in 2012 which saw the influx of thousands of investors. Mark Zuckerberg alone couldn’t have been able to drive the business this far if he was banking on his own pocket. As at August 29th, 2017, Facebook was worth $488.37 billion, while Mark was worth only $69.8 billion which means that the 85% of Facebook’s worth belongs to other investors.
If the financial and managerial burden of running a business is too heavy, partnership will be perfect option. You can team up with a couple of other like minded individuals and share the burden among yourselves. Proper legal documents should be signed in this case to avoid fraud.
7. Empowerment Programs
Yearly, various empowerment programs are run by Governmental and Nongovernmental Organizations. Such programs includes You Win. The good thing about these kind of programs is that they give out grants and not loans. But they are actually not properly publicized. One needs to be on the look out to benefit from them.
8. Financial Organizations
This is the most popular among them all. Commercial banks, Bank of Industry, Bank of Agriculture and various Investment oriented organizations have been the source of loans from time immemorial. The downside is the need for collateral and other heartbreaking demands. They are suitable for very huge loans.