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Different Loans for Startups

By SiliconIndia  |   Thursday, 27 October 2011, 00:26 Hrs
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Fremont: Acquiring the necessary capital to step on the red carpet of business fraternity is a very daunting task for the first time entrepreneurs, where the source of capital seems complex and at several moments, it seems illogical. It is important that the amount of fund required to launch and run the business is in the liquid form which for a given venture has to do with the unique goals and needs of him. So what are the different sources or form of loans that these first time entrepreneurs can acquire?

Free Capital

Different Loans for Startups
Capital raised from personal, family or friends are termed as free capital and can be gathered together to fund the business enterprise. The capital is termed free due to no interest or company ownership required to be paid out for the use of the money. The startups should first focus on this type of loan as during the initial period other sources of capital are not available until he has exhausted his own money and fully committed to his personal involvement in the business.

No third party will invest in your startup even if you have a great idea, until you have invested a substantial amount in it. Neither the financial institutions will make loans to your business without asset participation.

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