How to Borrow Money to Start a Business
How can Someone Borrow Money to start a Business?
Starting a business or investing in any kind of business involves money which can be gotten from different means. But many may not have money to start a business but instead decide to borrow money for their business.
Anything that brings money or profit can be seen as business and when it work, an good Entrepreneur, investor or Business owner will like to spend more money to achieving greater profit but when not available, such person will then borrow money.
6 Ways to Borrow Money for Business.
1. Family and Friends : The easiest way to borrow money to start a business or any investment is to seek money from family and friends. Even the Richest Man in Africa started his Business due to funds from an Uncle who believes in him and borrowed him the money.
Read Also, How to Overcome the Fear of Starting a Business
2. Commercial Banks : If you have a collateral like land or properties, then the commercial bank is a place to borrow money for business enhancement ot to start a new business. Banks like Citibank,Gtbank,Stanbic,UBA, ECO BANK, Bank of America all lend people money to start one business or the other with little intesrest.
3. Self Finance : If the Business is on a small scale, then it may require little capital which can be borrowed from personal savings or accumulated wealth.
4. Loans : You could borrow money to enhance or start your business through loans gotten from various financial institution like micro finance banks, banks, loan scheme etc. Loans can also be gotten online through some loan sites like Wonga and many other loan sites.
5. Sales of Property : At times, some property might just be there without any useful operation but such properties like land, cars can be leased for profit, then the money can be borrowed and use to start the business.
6. Place of work: I've done this before, i borrow money from my current place of work to start the business am doing now. You may not tell your boss what you want to use the money for but based on credibility and your attitude at work, your company can lend you the money you need to invest.
There are other ways you can borrow money to start a business but the one explained above are those that really worked for me and now am still managing my business.
If there other ways to borrow money to invest, please use the comment box below and let learn from you. Thanks for reading.