Small business grants are technically free money since you don’t need to repay them.

-Online companies and bootstrapped businesses can benefit greatly from business grants.

-There are many institutions that offer grants to deserving businesses.

-There are also tons of free information online that can help you win a business grant.

Cons

–Business grants are not exactly easy to get.



The process can be time-consuming and most institutions require an insane amount of paperwork.

–Since you’ll be asking an institution for free money, you need to justify your purpose.

You’re basically entering a contest where you need to compete with others.

You need to show potential investors that you have the best business idea out of the lot.

-With hundreds of thousands of entrepreneurs out there looking for how to raise capital for a business, expect the competition to get tough.

4.  Raise Business Capital Through Bank Loans

Personally, I think this option is a very risky one but it a sure way to secure funds to start-up.

With your business plan, you can contact your bank or others into granting loans to business owners.

Make sure you secure enough funds to run your business for at least 6 months. Remember you're just starting out so don't expect customers to start patronizing in mass.

Having that at the back of your mind, secure enough funds to keep your business moving. Because you'll have to pay workers even when you are not recording huge profit at the introductory stage of your business

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Key requirements to access loans in Nigeria
Name
DOB
Address
Employment status
Income
Expenses
Bank detailed

Furthermore, If funding a new business with a grant doesn’t appeal to you, then you might be better off getting a bank loan instead.

However, startup business owners might have to rely on their own personal credit history to get a bank loan.

So, before you apply for a loan, make sure that your credit score and your business bank accounts are in order.

Pros

-You don’t have to be accountable to the bank on how you plan to spend the money.

Bank personnel won’t get involved in any aspect of your business.


Over time, the bank will see you as a good client and offer you other loans with preferential rates.

Cons

–You need to prove that your business has the capacity to pay off the loan.

This could involve a lengthy paperwork process BECAUSE You might have to wait a few weeks at a time to know whether your loan is approved or not.



5. Raise Business Capital Through Angel Investors

Angel investors come in all shapes and forms.

Some help small startups by providing capital in exchange for owner equity, while others work through investor pools.

They are another great source of how to raise capital for a business.

Angel investors usually like to work anonymously via the internet so it’s no wonder that most of them invest heavily in tech products.

Want to know how to get investors interested in your business?

First, you need to meet them where they are.

These days, you can meet angel investors just by searching online or attending conventions.

You can also check out online platforms that help connect angel investors with aspiring entrepreneurs.