The big challenge in entrepreneurship is financing. Many entrepreneurs have great ideas or projects but they need resources, especially financial resources, which cannot achieve their dreams. They do not have access to bank loans which require much more requirements compared to other alternatives for mobilizing financial resources. What are the plausible sources of financing for his business?
What are the possible alternatives to a bank loan to finance your business creation project
When you start your business, you will need financing to grow your business. Whether it is loans, public aid, crowdfunding, professional credit, they represent viable sources of funding that will help you finance your business project.
The personal contribution, the common minimum you need
You must necessarily when you want to undertake to have a minimum of funds. This will serve as working capital. When you have this fund, you are fully independent and credible in the eyes of potential donors or lenders.
Microcredits represent a very relevant source of financing. They allow entrepreneurs to mobilize up to 18% of invested equity. it is therefore an effective means which is at the same time an alternative to the bank loan.
State aid is available and also constitutes credible sources of financing to start your business project or to finance it to improve its performance. Aid can come from local communities or from central power. Aid can take the form of a loan or a donation.
Crowdfunding is a method of crowdfunding that makes it possible to mobilize financial resources from individuals or investors. It is a very popular method in Canada that young people use to finance their businesses. But before you can achieve this funding, you must have a relevant and viable project.