Raising Capital in Business

Money with which to start and run your new small business can be raised in various ways. Obviously, the money can come from your own pocket. This may be

what you have saved for years. Or this may be proceeds from selling a car, a lot, jewelry or other prized personal belongings. Possibly, you have stock certificates or government bonds which you can readily convert into cash.

Using your own money is, of course, the safest way to finance a business. The next safest way is to borrow from close relatives and friends. You will have to pay them back, naturally, but they are usually prepared to be more flexible about when you repay them. Furthermore, you may also be able to get away with paying very low interest rates or none at all.

Sometimes, however, what can be raised from your personal resources and from relatives and friends are not enough to meet all the requirements of your business. Then you can start looking for outside sources.

1 comment:

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