Before you ask for startup capital for small business in Pakistan, there are many things such as the amount of money needed, the current financial state of your business etc.
Necessarily, having these answered is one of the important things to do, no matter from where ever you are borrowing the money.
You can get your loans sanctioned via two ways, one from the small business Administration and the other one is direct from the bank. If you go with the former one, then it would be much easier for you to get financial help from the local business investors or via local banking programs. The latter one involves contacting the bank officials directly and the loan conditions of the bank are very strict. The reason is simple that bank earns from the interest and not from the company’s profit, therefore, you must prove that you aren’t the one who is at risk by taking each and everything into consideration.
Apart from this, small business loans, can be easily arranged from the customers or via self-funding technique. But to do the same, on has to do the planning and research along with a bunch of experienced people.
“Equity structure” is important that must be understood well while applying for loans. Basically, this term is the amount of share that will be held by the firm and the investors separately. Considering an example, it can be said that an investor can own even up to the 90% of one’s company.
Now let’s further read on the different possible ways of getting startup capital for small business:
Selling of personal assets can buy you a major part of the capital required for starting the business.
Use of credit cards must be considered for a quick availability of capital. But, it must be remembered with that with credit cards comes a hefty amount of interest. Therefore, if you anyhow miss an installment then you might face double the interest for the next one.
With all the above-given info, we hope that you will be able to get small business loans in Pakistan with a much great ease.
Borrowing money against your property can also be considered as a great option. However, since the economic crisis, pawnbrokers have significantly tightened the confinements on such loans and lines of credit.
Seeking help from the venture capital is also a best-considered option. These capital firms make direct advances in fledgling companies in trade for equity stakes in the venture.