7 Top Sources of Capital for Business Owners

Filed in Noisemakers by on May 4, 2019

7 Top Sources of Capital for Business Owners, 7 WAYS TO SOURCE FOR CAPITAL TO START UP YOUR BUSINESS. Almost everyday people generate so many lucrative business ideas that they really wanna start up immediately but they mainly have issues and problems with coming with a specific amount that is needed as a capital to start the business with.

7 Top Sources of Capital for Business Owners

7 Top Sources of Capital for Business Owners

Overview of 7 Top Sources of Capital for Business Owners or start-ups:

  1. Personal investment. When starting a businessyour first investor should be yourself—either with your own cash or with collateral on your assets.
  2. Love money.
  3. Venture capital.
  4. Angels.
  5. Business incubators.
  6. Government grants and subsidies.
  7. Bank loans.

Sourcing for capital for a new or old business is quite difficult most especially here in Nigeria where the economy is very unstable and unpredictable.

Here are 7 Top Sources of Capital for Business Owners

1. personal saving: You can generate capital from your personal savings i.e money that you have been saving up for sometimes in order to start up something with it when the money must have reach a certain amount.

Read More: 5 Tips to Starting a Business in 2019

2. Bank loan : You can gather capital from the bank i.e getting a loan from them but they are so many processes and conditions involved. First of all ,you have to share your idea of business to them so that they can ascertain if the idea is profitable enough for them to risk lending your money. Secondly, you must have a collateral before you will be granted a loan from the bank i.e something that they can hold on to if you don’t pay back as promised or when due and also remember that you have to pay them back with interest based on their interest rate.

3. Angel investors: These are entrepreneurs who sponsor and fund business ideas with their personal money, in order to help start up their ideas if the idea is good enough but they do so with some conditions depending i.e there must be some sort of agreement between the two parties.


4. Cooperatives: One of the best ways to generate capital is to collect from cooperatives in which you belong to . Cooperative is a body of organization with members who contribute money monthly, weekly or daily at the end, it will be given to the person that is due to collect at that moment and the person will still pay back with a little interest and it goes like this for everybody in the cooperative.

5. Grants: A grant is a stipulated amount of money given by the government,organizations or an individual, to help business owners fund and promote their businesses . Maybe a criteria, requirement, qualification or even a presentation might be requested to ascertain eligibility of those that will be given the grant. 6. Crowd funding: This is a process by which one sell their business ideas on line or off line and someone can buy the idea and fund it with an agreement with the idea owner.

7. Selling of assets: You can also sell your valuable assets raise capital for your intended business too.

Read More: 10 Characteristics of Successful Entrepreneurs 2019

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