3 Ways to Finance Your Small-Scale Business

3 Ways to Finance Your Small-Scale Business

Business Loan
Table of Contents

Every year, thousands of companies are launched around the world. Still, most of them don't survive as they fail to meet the complexities of a competitive and demanding market. According to a recent survey, around 94 percent of new businesses shut down within a year of their opening due to lack of funds, despite having a good product and an effective business plan.  Every business needs capital to run. The availability of funds is directly proportional to a business's sustainability, at least for its initial years. One of the best ways to get sufficient capital for your business is availing of a loan. In this blog post, we'll discuss three avenues from where you can finance your growing business. Read on!

1. Private Investor

Private investors help people who have a good business plan but lack enough capital. People planning to open their start-ups can look for private investors who are interested in their business and ready to provide it with continuous cash flow. They generally require a detailed written agreement specifying the business plan and the money needed to take it forward. One of the significant drawbacks with private investors is that they will demand a share in your profits or ask for some percentage of your business's equity in return. For this reason, many companies opt for personal loan providers who can provide a small loan at cheaper interest rates. It allows them to conduct day-to-day business activities smoothly. Availing of funds from personal loan companies is extremely convenient. You can fill the application form online, and once you have met the eligibility criteria, the loan is sanctioned and disbursed within a few hours.

2.Government Funding

According to the survey cited earlier, small businesses contribute to around half of the country's GDP.  For this reason, the Indian government has launched many programs to support small companies and start-ups in their initial phases and promote their growth. Programs such as the 'Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA)' was started with INR 20,000 Crore which extended benefits to around ten lakh businesses over the country. There's also 'Stand-Up India' which supports women entrepreneurs who have practical business plans. It isn't always easy to get financial help from such programs as there are many time-consuming formalities and documentation before you can get the money. For this reason, cheap personal loans remain a winner for those looking to conduct daily business activities smoothly without getting bogged down in government red tape.

3.Personal Loan Companies

Reputable personal loan providers in India, such as Kreditbee help small-scale companies and start-ups to meet their day-to-day financial emergencies by providing them financial assistance in cheaper interest rates. The best part is that they are easily accessible and convenient. Borrowers can apply for the loan online within the comfort of home and submit all the documents to check their eligibility. Once they are eligible, these online loan companies can sanction their loans within a few hours, saving them significant time and effort.

Wrap Up

Borrowing money from personal loan companies is considered as one of the best choices as you don't need to share your business profits with anybody. Apply for an instant loan online by registering using your Facebook or Google account. Remember to check your eligibility first on the KreditBee loan app. If you have any questions about how to get an instant loan, simply call +080 44 292 200. You can also email us at [email protected].


KreditBee As a market leader in the Fintech industry, we strive to bring you the best information to help you manage finances better. These blogs aim to make complicated monetary matters a whole lot simpler.