Are you a business owner looking to expand your venture but struggling to arrange for funds? If yes, then you're not alone. Finding the right financing options for your business, especially in India's ever-evolving financial landscape, can seem daunting. However, it is important to know how to get funds for business expansion and overall growth.
There are several financing options available that can help you secure the funds required for your business expansion. In this blog, we'll discuss seven effective ways to get funding for business expansion in India. Read on to find out how to get funds for your business and which funding option suits your business needs the best.
Check out the top seven ways to raise funds for your business in India:
Self-funding is one of the most common ways to get necessary business funding, especially for specific functions or business operations. As a business owner, you use your personal funds to financially support your business or a specific vertical without relying on any external sources.
2. Venture Capital Funding
Venture capitalists are private equity investors or firms who invest in promising businesses in exchange for equity in the company. While these investors usually invest in startups, many of them consider investing in businesses with a minimum vintage of two years. So, if you have been operational for at least 1-2 years and are looking for some capital for business expansion, then you can consider going for venture capitalists.
3. Government Schemes
If you are wondering how to get finance for business through government support, you are in luck. To support small businesses, the Indian government has introduced several financing schemes and initiatives for business owners to fulfil their unique needs. Some of the top government schemes you can opt for your business include:
4. Business Loans
Business Loans are one of the best financing options you can consider for meeting your specific business requirements. Be it for business expansion, infrastructure upgrades, purchasing inventory, or adding to working capital reserves, a Business Loan is the perfect solution. These days, you can easily apply for a collateral-free online Business Loan from Non-Banking Financial Companies (NBFCs) like Poonawalla Fincorp in just a few simple steps.
Crowdfunding is becoming one of India's most popular ways to raise funds for businesses. Many platforms over the internet now allow individuals and businesses to collaborate for financing activities. Business owners can seek out funds from people in the funding platform to fulfil a specific goal.
6. Peer-to-Peer (P2P) Lending
Peer-to-peer lending platforms provide a space for borrowers to connect with the right investor(s) to meet their financial goals. If you are a business owner, you can register with a P2P lending platform that can help you match your requirements with the right investor.
7. Micro Funding
If you are a small business, micro-funding sources can offer funds up to a few lakhs, along with training and mentoring to help you grow your business. However, such sources specifically focus on startups to help kickstart their business.
Apart from choosing the right source of funding for your business, you might have to work hard to convince investors and lenders. Read the tips below to ensure you find the best funding source for your business:
It is important to know How to get fund for your business to facilitate growth and success. You can choose from any of the options listed above to ensure that your business continues to flourish. Options like getting a Business Loan or MSME Loan are some of the best financing decisions you can make for your company. This unsecured loan is usually offered at competitive interest rates with flexible repayment options. Additionally, getting an unsecured Business Loan is convenient and easy. So, go ahead and apply for a Business Loan and turn your dreams into reality.
What are the different sources of funding?
There are several sources of funding available for businesses in India, such as crowdfunding, venture capital funding, Business Loans, and more. Among these, Business Loans are considered excellent for small businesses thanks to attractive interest rates, minimal documentation, and flexible loan tenure, among other benefits.
What are the eligibility criteria for Business Loans?
The eligibility criteria for Business Loans can vary among different lenders. If you wish to apply for an unsecured Business Loan from Poonawalla Fincorp, please visit the Business Loan eligibility and document page on our website.
How can I apply for a Business Loan?
To apply for a Business Loan online, you can simply follow the steps below:
After successful assessment and verification, the approved loan amount will be disbursed to your chosen bank account.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Business Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
The lifeblood of any business, working capital refers to the money available at your disposal to meet present and short-term needs.
Micro, small, and medium enterprises (MSMEs) are among the largest employment providers in India. The total contribution of MSMEs to the overall employment in the country is 69%.
A business loan is any loan given for business-related expenses. The borrower who applies for a business loan can be a small to medium-sized enterprise (SME), a micro, small, and medium-sized enterprise (MSME), or the largest business to exist.
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