How to Finance Business Growth without Banks
You need to inject money into your business but you don’t want to avail the services of the bank; the chances are that you are going to lower the limit of acquiring a loan but still there are a lot of non-bank investors that will be glad to give you finances if you can show a good enough cash flow and a hefty return on their investment or bury them under the emotional power which is bound to work on relatives and friends. So, don’t be too worried if you can’t afford the interest rate of the banks or despise banks for their nosy attitude. You can still get enough money from other sources that will help you to handle the scenario but you will have to work hard.
Instructions
-
1
Ask your family and friends for the financial assistance. Show them the realistic cash flows and your investment objectives that will help you attain an amount of money which will lure them in helping you. Make sure that you keep everything crystal clear and don’t dodge your friends or family because if you fail to meet the expectations you promised, the relations will be hurt and it will be major loss not only a financial but an emotional one as well.
-
2
Find angel investors. These are those people that are ready to invest in firms which are not looking quite good. These are risk takers. Show them that you are going to get big by investing in a particular venture and lure them in giving you money. You can ask around for such people who are eager to take risks and got money.
-
3
Use cost cutting methods. Those parts of your business that are not your core business should be outsourced at a lower cost so that you can save money which can be adjusted in the amount required to raise. For example; you are running a cars showroom and you want to raise finance to buy recently released cars that are bound to sell like hot cakes. You have a tuck-shop at the cars showroom which is run by one of your workers but he is not a professional. You can always give that shop to someone who knows the business and can do the job efficiently.
-
4
You can ask government for financing or subsidy in some cases. Grants and donations are also an option if you have strong links.
