Personal Loan for Startup

Almost every one of us wants to launch his own business, but not everyone has the initial capital to start a business. What to do in this situation? You can get a loan for a startup in a bank, but the procedure is very long-lasting, and collecting documents takes a lot of time, so this idea can be immediately discarded. An alternative could be financial assistance in a microfinance organization. Some microfinance organizations issue large sums for any needs, you do not have to report where the funds were spent – to buy a fur coat or equipment or to rent office space. The application can be submitted remotely through the official website of the company.

Loan benefits for startup

Many first-time entrepreneurs take loans to invest in developing business. What are the advantages of applying to a microfinance organization? Consider the main ones:

  • a minimum of documents and certificates – a loan for a startup is issued only with an ID;
  • fast consideration of the application – up to 30 minutes;
  • convenient ways to get money – on the card, current account, e-wallet;
  • without guarantors and collateral.

The lack of a report to the microfinance organization on what money was spent.

The last point is very important. For example, in banks, a person needs to explain the reason for taking a loan, prove the safety of their use, provide guarantees. In microfinance organizations, everything is simpler, you get a loan and can spend it on anything: buying equipment, renting a room, paying salaries to employees, etc.

Other ways for a startup

Finally, there is another option – this is participation in various competitions, which are held by venture funds, state authorities, local governments, large companies, universities, and many others.

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In recent years, start-ups have been organized by Google, Forbes, Synergy Soft, some of the universities that have the status of national research, as well as many other organizations.

How to find out about such events? Follow the news on the websites of universities and authorities, for ongoing exhibitions, conferences, forums and other similar events in your area.

Financing startups through contests can take very different forms. If your project wins the competition, you may be given a small amount free of charge, or more substantial financing on an interest-free loan. Some contests are, in essence, a presentation of projects by the same venture and investment funds, and the winners of the competition receive investments from the fund on standard terms.

Finally, other contests are, in essence, a showcase where entrepreneurs present their project to dozens of interested funds and private investors, and financing is received not only by nominal winners but also by any project that attracts some of the investors.

Category: General

Tags: Business, Startup