20 Business Financing Options Every Entrepreneur Must ConsiderAbbakin
These business financing options every entrepreneur must consider will show you the easiest yet overlooked sources of business finance available to most entrepreneurs and startup businesses.
Regardless of your organizational structure or business size, entrepreneurs have the individual responsibility for providing finance for their business ventures.
After selecting the most viable business idea and analyzing the costs of the business during your planning process; the possible sources of business financing have to be established too.
Fortunately, most startup entrepreneurs and small business owners have a wide variety of options when it comes to funding their businesses.
This course will show you the easiest yet overlooked sources of business financing available to most entrepreneurs and startup businesses.
At the end of these lessons, you will learn some alternative strategies and things to think about as you go about raising the money to make your business succeed.
This will include how to discover business financing opportunities, negotiate for, and maintain sources of funding to help you start and expand your business.
We have also provided a link on How to Prepare Your Loan Application with the Banks to help you grow one step at a time.
This course is 100% Free Business Training by Abbakin.
It’s a short online course you can take at your own pace and convenient.
This course is part of a sequence: “Starting and Operating a Business Learning Path”.
The series features over 500 acceptable business management principles and advance practices worldwide.
To get the most out of this session, it is expected that you take the previous lessons before continuing this course!
- Starting a Business 101: The Free Business Training
- The Business Planning Strategies That Work
There are total of 6 lessons that may last up to 35 minutes or more.
Please preview this course below.
Below is a list of some top business financing options to research for in terms of accessibility, loan terms, interest rate, payback program, and amount required.
Top 10 Possible Options to Consider in Financing Your Business
- Personal Savings
- Credit Purchase from Suppliers
- Contributions from Friends and Relatives
- Unsecured credits like Small Business Savings & Loans
- Alternative Lenders like Corporative and Unions
- Short to Long-Term Borrowing from the Banks
- Long-Term Borrowing from Finance Houses
- Equity Financing and Venture Capital
- Commercial Mortgages
- Government Grants and Loans
As you continue, we will give more details on this topic area that you can use to raise more for your business.
Before we proceed on the course, it is important you understand some common financial factor that formed the basics of our discussions.
Some terms in business financing you need to know includes saving, loan, investment, interest, collateral and more.
The government has been the major source for investment funding to small and medium sized subsectors across the world.
This is basically done through development finance institutions. You will find out more on how this opportunity can help your Business succeed.
Equity financing is where the money raised gives the investor or money contributor an ownership interest in your company.
This ownership is commonly represented in the sale of shares (stock) to a limited number of investors or participation by venture capitalists.
Personal savings and borrowing from families and friends can be considered the primary sources of funds to most sole proprietorship businesses.
However, in a world of low-interest rates, you need to put your money into the right type of savings account with the best possible rate.
Banks whether commercial, industry or development bank naturally offer the least interests funding for Small and Medium Enterprises, SMEs.
You can obtain loans from commercial banks as small as N5M and as high as N100M depending on the scope of your business.
The means of funding a business can surface from unexpected sources. But best way is to start by knowing what your lender wants.
A common way is to simply ask a friend, business advisor or the bank you are considering.