5 smart ways to raise capital for your business

Whether it is to support daily business operations, expansion activities or machinery purchase, finance is the key to running a business efficiently. As a business owner, it is your responsibility to not only keep an eye on sales, revenue and working capital, but also identify affordable and convenient avenues of finance. This will help you tackle gaps in cash flow effectively, and keep your business going strong and steady. The best option is to find a funding solution that matches your business goals while making repayment as hassle-free as possible.

In today’s financial landscape, where online lenders and NBFCs thrive, banks are no longer the only avenue you can rely on for funding. You can choose from a wide range of business financing options, based on your needs, with just a little research. To help you secure funds for business, here’s a list of funding options currently available in India.

·  Online Lending

Online lenders offer convenience as they give you access to funds regardless of your location. They also score high on ease of application and quick sanction of funds; however, their high interest charges may deter small business owners. Added to this, some online lenders are unscrupulous and this lack of credibility makes them a last resort for SMEs.

·  Angel Investors

For business growth and diversification as well as initial start-up capital, angel investors provide a great financing solution. However, the return on investment that these investors ask for can be intimidating for small business owners. If your business is charting a new territory in the market, this may be the right source of funds for you as angel investors are known to have a greater appetite for risk.

·  Venture Capitalists

Substantial funding along with business acumen makes venture capital a good option for business owners. However, these investors only offer funds against equity, and only give money to businesses that have the scope for high returns in a short time frame. The dilution of business ownership and a short-term profit view are two factors that may prevent you from considering this option for your business’ financial needs.

·  Business Incubators and Accelerators

Want to develop a go-to-market strategy and infrastructural or technical support? When your business is in its initial stage, teaming up with a business incubator or accelerator may be the right move. It gives your business a step-up into the market along with needed funds. The downside is that these incubators have an ownership stake in the business and their exit strategy is usually based on the business being acquired. So, these may not be the right option for business owners to want to retain the freedom to remain at the helm of the business.

·  Non-Banking Financial Companies (NBFCs)

Flexibility, convenience and affordability are the key benefits offered by NBFCs. NBFCs like Bajaj Finserv give you value-added services such as doorstep pick-up of documents and a Flexi Loan facility that makes it easier to tackle unpredictable needs for funds without making repayment a burden. They offer the same convenience of online lending, but with more reliability.

Other benefits offered by a Flexi Business Loan from Bajaj Finserv include:

·  High loan amount up to Rs.30 lakh

·  Money in bank in 24 hours

·  Minimal documentation

·  Nominal interest rates

·  Flexible tenor

·  Easy repayment options

This quick financing solution can be the success-defining moment for small business owners. Minimal documentation, fast and customer-centric service, along with nominal interest rates and simple eligibility criteria make NBFCs perhaps the best avenue of business finance.

Whether it is to make the most of a new business prospect, evolve to meet new demands in your field, or script your growth story, you can pave the path towards success by choosing the right financing option for your business.