What is the Best Way to Raise Capital Without Selling Shares in India?

In certain situations, organizations or firms would require funds to raise capital to build new infrastructure and increase their business growth. Most of them would raise the capital by selling their shares publicly but there are also alternate options in which an organization could raise the capital.

However, Goodwill is here to help you by suggesting a few options that would help you to choose the best way to raise capital. Goodwill is a trusted brokerage firm in India since 2008 and offers expert strategies and techniques to its valuable investors. In this blog, Goodwill has listed down the options that help the firm to raise capital without selling their shares publicly.

Best ways to Raise Capital Without Selling Shares:

1. Bootsrap Your Business:

If you’re running a small business which isn’t operating with functions like manufacturing and transportation, then you can potentially fund your own venture in a feasible way. You might think that funding your business with your hard-earned money may carry a lot of risks, yes!, it’s true, but this will help you to stay focused and unleash your potential on improving your business growth. Investing your savings in the business will prompt the investors and lenders to partner with you!

2. Avail a Loan:

Seeking loans from a bank is one of the traditional financing ways that allows you to raise capital. Owning a small business or larger business, no matter what you own, you can always seek the business loans at favorable interest rate quoted by the banks and other financial institutions. There are certain factors that make you eligible for availing business loans:

• Good Credit profile with a score above 640!
• Proof that declares you have been running the business for 2 years or more.
• Submitting annual revenue report.

3. Seek Financial Assistance from your Lovable Peoples:

Raising capital through friends and family has been a viable option especially for startups. This is because it’s always a good option to seek help from the ones who understand your business and the risks as they have faith that you will succeed. The financial assistance from your loved ones can be termed as either a loan or equity in your company.

4. Find an Angel Investor:

If your idea is promising, well you can raise funds by seeking financial assistance from the angel investors. Angel investors are investors who hold minimum threshold investment of INR 25 Lakhs over a certain time duration. You can approach an angel investor with your updated business portfolio and performance report to make the investor to invest in your firm.

5. Get Finance from Venture Capitalist:

Venture capitalists tend to invest in matured firms when compared to angel investors. This is because VCs have the responsibility to achieve certain returns for the firm. They are focused on achieving scalable returns with proven business growth. If your company satisfies these requirements, you could apply for a successful investment with a VC firm.

Raising the Capital:

As you run a firm you should always stay tuned with the market, In order to stay tuned you would require funds to improve the infrastructure for a successful business growth. Adopt the discussed strategies to raise the capital without selling your shares publicly!

Instead, if you’re planning to sell your shares publicly, then seek the guidance of Goodwill. Backed by years of trading experience, the experts at Goodwill offer expert strategies to make your process easy and simple. To know more about Goodwill, click here!

 

For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill’s Facebook Page and get instant live updates on your stocks.