Sourcing finances for small scale businesses
source
Globally, economic situation keeps dwindling, moving from bad to worse. Infact feeding from hand to mouth has turned out to be a difficult task. Those who have managed to set up small scale businesses or probably retail outlets find less output due to their inability to boost the business financially.One can never expect much from that which much is not given therefore the law states that "The more you give, the more you get or the less you give, the less you get". Without mincing words, the input determines the output
So this post will highlights sources from which capitals could be generated to help grow small scale businesses
Sources like:
Savings
Personal Loans
Bank Loans
Government Programs
Credit Unions
Could these generate funds for businesses?? Let's see:
Savings: It is advised that we save for the rainy days, this means that we'll have do more of budgeting and less expenses, cutting off irrelevant stuffs off our list. One could make it a priority having a regular saving schedule either daily, weekly or monthly. Entrepreneurs should be able to set aside living expenses for future use, this could be used to keep a small scale business growing
Personal Loans: This could be a form of tactic by entrepreneurs to get financial assistance from family and friends. Since these ones are really close, they could willingly borrow the entrepreneur some amount of cash for his business. The entrepreneur too when getting a loan should be straightforward, make the loan concrete by putting it down in writing, state the interest rate and when it will be repaid. At this point, one will earn trust from family hence getting the loan at ease
Bank Loans:Banks guarantee loans when it comes to their trusted customers, customers whose banking history and records they well know. Although getting loans for small scale businesses seems out of point for banks, they find it helpful to render such monetary services to bonafide members after thorough scrutiny. They also analyse credit scores before considering whether to approve a small scale business loan or not
Government Programs: Government do offer grants and other programs to help grow the masses financially. Such programs when requested for could be analyzed and approved by the appropriate federal/state financial committee
Credit Unions: Many credit unions have been set up by members of the public with aim of supporting it's members financially when need be. To be a beneficiary of such union, an entrepreneur must be duly registered as a member.
Have you wondered why you haven't been able to source finances for your business???
It's because as an entrepreneur, you lack the following:
Strong assets: to qualify for a loan, an entrepreneur must have enough assets maybe collateral or active income account as a prove that you're capable of paying off the debt
Long time business span: to be eligible for loan, an entrepreneur must be experienced and in the business for considerably a long time, enough to convince the debtee
Existing cash: an entrepreneur must not run out of cash, this shows you're accountable and diligent in your business Therefore with an existing sum of money, a loan is guaranteed
Good credit reputation: when an entrepreneur is known to be honest and keeps a history of paying off his debts as at when due, then he's trustworthy and eligible for a loan
To thrive successfully as an entrepreneur, one must be able to boost his business in all ramifications and that involves the financial aspect. Get loans from the right sources and watch your small scale business bubble to a large one.
Posted through the ECblog app (https://blog.etain.club)