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How To Fund Your Business Effortlessly?

By Author: Aishwarya Mahurkar
Total Articles: 291

Businessmen need funds. That is an almost timeless truth. They need funds to start it, salvage it, and expand it. In other words, a smart business owner can always use additional funds to generate additional income. However, it is completely different thing to do it effortlessly. You need to presume a relative effortlessness, though. It is impossible to gather funds for business success without some amount of effort. So, what are relatively easy options available for business owners today? You can consider loan against property . You can also consider loan against other assets, based on availability. You can also consider an angel investor. But, they are not easy to come by.

Loan against assets like stocks, gold, FD:

There are several movable assets that you can take a loan against. But, you need assets worth sufficient net value for a substantial principal amount of the loan. That’s why, in India loan against property is much better choice. But, all these loans against these secured assets have much lower interest rates than any other business loan or mortgage. However, there is an inherent risk to loan against assets. The market value of these assets keeps fluctuating. For example, equities, gold and mutual funds. Otherwise, it is a great asset to lend against.

Loan against property:

Loan against property in India is the best way to raise a capital to start or expand a business. But, the interest rates for loan against property are very low and principal amount can be high. That’s why it is the perfect combination. A low-interest rate loan against property can bring in significant cash for a start-up as well as an established SME in India. The primary concerns with the options are loan to value ratio, interest rate and evaluation of the property.

Angel investors:

This is one of the hot trends in a digital world today. Angel investors are a preferred alternative to venture capitalists. But, angel investors are not easily accessible. In addition, this concept is not well established in India. Though, a lot of people in India, family and friends, do extend a financial support to entrepreneurs. It is an unorganised form of personal loan. It works on a mutual understanding as to loan tenure and interest rate. This form of finance is far more complicated. That’s why loan against property works as the best possible solution.

An established business can consider a business loan or venture capitalists. A growing business can consider IPO. There are several forms of finance available in India. But, they are not as easy as the loan against property.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the different types of home loan products such as Housing loan, Home improvement / renovation loan, loan against property

Total Views: 101Word Count: 474See All articles From Author

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