It includes Cash Credit limits/ OD Limit for working capital requirements or term loan for plant & Machinery/ Building construction.
There are four traditional funding Methods:
- Small Business Loan – They are on very limited life support.
Venture Capital- Venture Capitalists normally want a controlling share of the companies in which they invest.
Angel Investors – These are tended to be private individuals or investors groups who want to invest their money into businesses that have the potential to make at least 10X returns. They usually take a minority share of the company and leave the control with the business owner. Angel investors typically invest close to home and in business markets that they know very well and have contacts in that can help grow the business.
Public or Private Grants – Qualifications for grants are very strict and mostly for goods, services, or research the falls under the public interest domain. They are hard to find, they have a long very involved application process, and very few are approved.