Product Launches : How Borrowing Can Make Your New Project Work?
With over 1,000 new tech startups launched in India in 2017 alone, it’s clear that this is a country that is very friendly to entrepreneurs. But as India Today reports, funding for startups can in many ways be allocated inefficiently – and as a result it can sometimes be a struggle for these companies to borrow the cash they need to progress to the next stage of their business’ lifecycle. Whether it’s researching and developing a new product, adding an innovation extra service to your roster or simply opening a new branch, loans are hard to come by.
Luckily for Indian entrepreneurs, though, help is at hand. There are ways to raise borrowed cash and get a loan set up no matter what your firm’s size might be. Here are some top tips on getting the funds you need to help lift your next product or service off the ground.
Apply for a business loan
As many Indian entrepreneurs will know from bitter experience, both the banking and the investment worlds in this country have generally tended to stay away from providing early-stage, high-growth companies with loans in the way that occurs in other start-up heavy countries around the world. But the situation is beginning to change. There are reports, some funds – such as Alteria Capital, which is about to invest $154 million – are emerging to cater to the Indian start-up scene, so it may be worth applying to some institutional investors once you have your new product or service’s business plan in place.
Explore personal finance options
If the range of institutional investment or lending options isn’t broad enough for your business, though, there are still alternatives. One of the main ways to raise cash when you’ve got a great product idea is to take out a loan in your own name rather than as your business, and then use the new cash inflow to fund the market research or staffing costs which are necessary for expansion. With some wise financial management and a strong startup business plan, this can be a good way to access capital quickly.
In the face of a dearth of providers and constant loan application rejections, it may seem like there is no way forward when it comes to borrowing the cash you need. But if you look hard enough and use all of your entrepreneurial spirit and grit, there’ll always be a way. From personal loans to manageable business debt, there’s a way forward no matter what your business’ circumstances might be.