15 Ways to Get Funding for Your Startup Business in India

If becoming a businessman or Entrepreneur is your dream, and if you can’t achieve or complete it, then the most common reason can be yours i.e. how to fund your start-up or start-up idea. According to a study that has made recently, most businesses fail because of lack of Funding in their day to day Operations. As some business require huge capital investment and some require very small, but at the end, they all need Investment for Smother running the business. So, today I will tell you some instant learnings on “how you can get fund for your Start-up Idea”.
Here is the detailed list of “how to fund your start-up”. However, there are some options that are only available in the market but for other countries, same alternatives are also available.

1. The Bank

When it comes to funding, at first every Entrepreneur and businessman thinks about the Bank loan. So, how does it Work! Basically, banks provide two types of finance for Businesses: “The working capital loan” and “Funding”.
• The working capital loan is the loan that is required to full fill one complete cycle of all the revenue and expense operation that is running in the organisation. This is basically given on the basis of overall hypothecating Stock and debtors.
• The funding form bank usually the same procedure everywhere. It basically means sharing the business plan, and evaluations details, along with the project reports and all necessary files, based on that loan will be sanctioned.
So, if you are thinking to get a loan from the bank, ask them what the details they required for sanctioning of a loan and prepare it.

2. Loan form Micro-finance providers

Sometimes you don’t get a loan from a bank, and you might think that what to do, and finally end up with being depressed. So, microfinance is basically access to financial services to those peoples who can’t access banks financial services. It is growing rapidly for the peoples whose requirements are limited and ratings are not fulfilled by the bank.


They work similarly like the Micro-finance providers. The NBFC (National Banking Financial Corporation) that provides all the financial services like the bank. People only contact NBFC when bank reject their loan because their requirements are not completed, and NBFC provides funding without such requirements.

4. Crowdfunding

Recently, Crowdfunding is one of the newer ways to fund your start-up, as it is gaining popularity day by day. It’s something like taking a loan, pre-order, contribution form more than one person at the same point in time.

How it Works:

An Entrepreneur and Business-man will gather all details about his business and put a detailed description of his business on the crowdfunding platforms. In the detailed description, he should mention his goals, Vision, Mission, why he needs funding and So on. After giving the detailed description the consumers are able to see the business plan on crowdfunding platforms and they can give money if they like the idea. The money consumer give ensures that if you launch the product, the consumer will gonna buy it, or we can say consumer pre-register himself/herself for the product.

5. Self-Funding

Self-funding is also known as the Bootstrapping . It is the most effective way to get funding as you are just starting up. It simply means invest your savings. This method is mostly used by the entrepreneur because they don’t want to reveal their idea or they don’t want that someone will steal their idea.
Some businesses treat Self-funding as the first option because the money you own is your own money and no-one wants to waste their own money in any condition and this will also help you in tied up your business.

6. Incubators

In the early stage, some business takes Incubators as their funding option. These programmes are widely spread all over and can be easily found. Today’s incubators are often known as Non-profit programmes that are designed to teach people to be an entrepreneur, also aware them how to sustain in the market and how they can fund. Incubators are locally sponsored that bring new talent to the market.
In simple words, we can also say that incubators behave like the parent who nourishes and teach their child (Business). These programmes run over a 6-8 months period of time.

7. Accelerators

Moreover, Incubators and Accelerators do the same thing but there is a slight difference between both of them. As Incubators helps business in Assessment/Nourishment, while accelerators help business to run and to take a giant leap. So, if you have little bit investment and want your business to grow rapidly, you must contact Accelerators as they will help you in everything you need for your business.

8. Government programmes

The government of India launched 10,000 crore start-up funds in their union budget 2014-15. To boost innovation in India the government has launched “Bank of ideas and Innovation” Programmes.
It basically means you submit your start-up ideas to these programmes and once plan approved, the loan gets sanctioned and you get a MUDRA card. MUDRA (Pradhan Mantri micro unit’s development and refinance agency limited) card is your debit card, which you can use to purchase raw material for your business, without any issue.

9. Angel Investor

Angel Investors as it name says they are the angels for you or your business as they have surplus funds and keen to invest in Upcoming start-ups. They work in a group of networks and they screen your idea before investing. Angel Investors can be beneficial for you as they have lots of money but you have to present yourself as Entrepreneur, which means you have all the information about your idea such as market size, competitor’s analysis, demand for the product etc.
If Angel investors find you that you don’t have proper data and just have an idea they may reject your idea and sometimes they also ask for 30% equity in the company. So, prepare yourself before pitching to the Angel investors.

10. Winning Contest

As the day by day, the number of competitions has increased, like b-plan, shark-bait and there are tons of available on the market. Their main motive is to find the upcoming minds and innovation and help them. In such competitions, you have to present your idea and the analysis you have made so far. You can participate in such contest and try to win the contest, as the winner will be awarded by cash price and sometimes you also get the funding for your idea.
So, winning these types of the contest can also get you some media coverage, which will be beneficial for your start-up.

11. Credit Card

Now a day’s Credit card is one of the ways to finance start-up and can be used to generate money quickly. If you are new to the business and don’t have too many expenses, you can use your credit card and make the minimum payment amount.
However, using a credit card every time can be harmful to the owner, as Interest rate build quickly and which simply means that owner has to pay more amount than he borrowed.

12. Sell your Assets

This can be a tough step for you but when you are not getting investment from many sources, you can sell your assets or make them lease and complete your short-term funding requirements. You can buy back your assets when you have money, in this condition you will more efficiently because you have sold your assets for this work and you don’t want to spoil your money.

13. Freelancing

You can start arranging funds on your own as well. You can give services to the people who are looking for it and can receive some funds from there. Remember, always offer the services in which you’re experienced as freshers are less likely to grab the projects.
You can attract a handsome amount from freelancing too as it is a fast way to generate money by offering your skills.

14. Loan From Friends/Relatives

It is the easiest and the hardest way to get the funds at the same time. If you have the right way of representation of your idea, then you can easily convince your friends/relatives to help you financially.
It has an advantage too, as a friend/relative they would help you in implementation of your idea and will support you in other ways too.
So it is a good and trustworthy source of funding to fund your startup.

15. Job & Start-up

You can fund your Start-up by doing a job side by side till you start earning revenues from your Start-up. Once you start earning from it, just quit the Job. It is an easy and another type of self-funding.

The bottom line

As starting your business sometimes might not take much capital, but surviving for a couple of years can be a problem for you. You might face difficulties in getting extra funds, so consider all the factors before getting funds from other sources. As loan involve paying interest and sometimes you have to give the equity to some unknown person.

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