Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Every year almost 94% of the start-up businesses fail to keep their business ongoing and successful in the long-run, due to lack of funding to cover up their operations and production costs. For an entrepreneur starting their own business is a very risky and challenging task to do, the better funding sources are very important to make it happen. Generating funds for your start-up business is not as simple as it seems to most of the people out there, but we are still lucky to have so many sources to opt from to raise our business capital, all you should do is to fulfill all the requirements of the investors and traditional lending institutions to fall into the criteria of getting small business loan. Here are six practical ways to raise your business capital: Table of Contents 1. Apply for Small Business Loans:2. Raise the Start-Up Capital Yourself:3. Ask Family and Friends for Help:4. Get Angel Investors:5. Try Crowdfunding to raise funds:6. Get Venture Capital for your Business:Author Bio: 1. Apply for Small Business Loans: The lending policies of banks have become very strict now due to which getting a business loan from the bank requires a lot of determination and patience. Banker asks for your personal and financial projections and goes through your personal credit score history and many other things like that before forwarding your loan application for the approval it might take weeks during this process. There are different types of loans which the bank offers depending upon the requirement of the borrowers such as a working capital loan, start-up loan, and property finance loan, etc. Click here if you need to apply for a small business loan. 2. Raise the Start-Up Capital Yourself: You can manage to finance your start-up capital on your own by using your savings or getting a credit card with zero interest rate and by selling your valuable personal assets. Selling your personal assets is a big and dangerous step to take. If you believe in your vision and you are confident in your abilities to make your business successful in the long-run only then you should invest in your business and financing it on your own. 3. Ask Family and Friends for Help: Asking your family member and friend to invest in your business is one of the most effective ways of raising funds for your business. You won’t have to worry about paying the higher-interests to the banks or other financial institutions and even if your family and friends will demand the interest rate it will still fall below the line of interest rates charged by the traditional investors. The benefit of borrowing money from your friends and family is that they will believe in your vision and business ideas, the only thing you need to be careful about if make the loan agreement on legit papers for keeping the relationship unharmed from the conflicts. 4. Get Angel Investors: Angel investors are ordinary individuals with surplus amount of money in their possession, but they are the experts in investing their money into different business opportunities and start-up business, they are also a pleasant source of mentors to guide you to the right track to run your business along with lending you the capital required to do so. They are interested in the high rate of return on the money invested in your businesses. If you don’t know any angel investor personally, you can still reach out to angel investors through different websites and on social media platforms. 5. Try Crowdfunding to raise funds: Crowdfunding option is highly considered by the borrowers to raise funds for their businesses. There are so many crowdfunding platforms that exist on the internet, using those you can apply for the funds you need to start or expand your business. All you have to do is to put up the detailed required by the website to apply for the funds you want, and if you qualify, there are so many investors who are willing to invest their money in the small amounts in your businesses. The lenders mainly depend on your credit score history. 6. Get Venture Capital for your Business: These venture capital firms are professionally managing the funds invested in your small business with the high potential to earn higher revenue. These venture capital firms are suitable options for most of the start-up business who are looking for something more than just funds; these firms will not require you to repay the debt instead they will ask for a certain percentage of equity of your business. This will provide you with professional and experienced assistance with strong industrial contacts. The chances of your business growth will improve by taking a loan from venture capital firms. Author Bio: David Simmon is a financial analyst and accounting expert. He has in-depth knowledge about setting up small businesses as well as creating profitable investments. He regularly contributes articles related to business and loans at https://www.ebroker.com.au/.