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10 Sources Of Funds For Business


Maintaining and Managing a business venture can be challenging especially when it comes to funds for business.
Inadequate funds has made some business to liquidate while some are merged to become one.

Finance is the only grease that lubricates the wheels your business, without funds, there is no business. I have listed 10ways to finance your business

1. Loans

This is the most common way of financing businesses. You can borrow loans from banks to manage your business. To get a loan from banks, you must have a solid credit score usually 650 and above, you must have have assets and you must be a regular tax payer. However, it is very important to read all the terms and policies for giving out loan so that you can fully understand the terms attached.

2. Savings

This is the best way to get funds for your business independently. If you want to make it in business you need to save daily. It is only when you save that your business can be saved.
See below how much you can make by saving daily for 365days

               DAILY SAVINGS

  • Save 100 naira daily—— get 36,500 naira in the next 365days
  • Save 200 naira daily—— get 73,000 in the next 365days
  • Save 300 naira daily—— get 109,500 in the next 356days
  • Save 500 naira daily—— get 182,500 in the next 365days
  • Save 1,000 naira daily—— get 365,000 in the next 365days
  • Save 1500 naira daily—— get 547,500 in the next 365days
  • Save 2,000 naira  daily——  get 730,000 in the next 365days
  • Save 2,500 naira daily—— get 912,500 in the next 365days
  • Save 3,000 naira daily——get 1,095,000 in the next 365days                

WEEKLY SAVING

  • Save 500 naira weekly β€”β€”β€” get 26,500 in the next 365days
  • Save 1,000 naira weekly—— get 53,000 in the next 365days
  • Save 1500 naira weekly —— get 79,500 in the next 365days
  • Save 2,000 naira weekly —— get 106,000 in the next 365days
  • Save 2,500 naira weekly—— get 132,500 in the next 365days
  • Save 3,000 naira weekly —— get 159,000 in the next 365days          

MONTHLY SAVINGS

  • Save 2,000 naira monthly —— get 24,000 in the next 365days
  • Save 2,500 naira monthly —— get 30,000 in the next 365days
  • Save 3,000 naira monthly —— 36,000 in the next 365days
  • Save 5,000 naira monthly β€”β€”β€” get 60,000 in the next 365days
  • Save 10,000 naira monthly β€”β€”  get 120,000 in the next 365
  • Save 15,000 naira monthly β€”β€” get180,000 in the next 365days
  • Save 20,000 naira monthly β€”β€”- get 240,000 in the next 365days

Choose anyone you can be consistent with, construct a piggy bank, and save your money on a weekly, yearly, or monthly basis


3. Friends & Family

You can borrow funds from your family and friends who have extra cash. The interesting part of this is that you get funds with low or no interests, while some may not request for refunds.

4. Crowd funding

This involves taking a small amount of money from a lot of people to equals the a large amount of money for investment. The successfulness of your crowd funding will be based on how you are able to market your preposition. Examples if crowdfunding  platforms to choose from are IndieGoGo, Kickstarter, Seedrs, and Crowdcube.

5. Grants

Grants for small businesses are usually by government, its agencies or charitable organisations. The benefits of grant is that you don’t have to pay back, all you need to do is apply, if you meet specific criteria, you will be considered. An example is Innovate UK that provide grants for innovation in some area of the UK economy.

6. Invoice Finance

This is a source of income whereby companies are allowed to borrow against the value of invoices due from customers. This can be better sources of funds if you have many customers with long payment terms. This option is only available to companies with a very strong tracking record of revenue generation.

7.Business Overdraft

This is good sources of funds for short term. You can use your business current account to borrow an amount or make payment from your bank up to a limit known as facility which exceed the available balance.

8. Merchant Cash

If you are using card terminals to receive payment from customers for your business, you can receive cash advance through terminal providers from lenders. The terminal providers can see your cash inflows and outflows, so they will provide funds in exchange based on the daily income in the credit card. Your repayments remains in same proportion with your business income.

9. Asset Finance

This is a form of business financing that requires purchasing machineries or companies releasing cashing from asset they owned. This can be through Hire purchase or Finance Lease.

10. Business Credit Cards

This is the most common sources of funds for small business. Companies uses the credit card  for expenses without interest but the outstanding balance must be paid off at the end of the credit free period.

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Damilola Ogunmakin is an information entrepreneur, digital marketer and a blogger. He identifies and evaluate information needs, provide information directly to information and organizational consumer.He helps individuals and organizations to develop websites and associated applications.Damilola is currently a team member at FitLife CafΓ© and CEO at Ellidams Innovative- an ICT Company that specializes on Website Development, Digital Marketing, and Graphics Design.

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