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4. Family and friends: Borrowing from family or friends is a good idea when
amount you need is relatively small. It can be clubbed with part of your own savings and novel fund raising ideas like a garage sale to help finance your business. This is an easy way to raise funds, as these are
people who know you well and need fewer assurances. It is also unlikely that they will drag you to a court if your business takes longer to get profitable and repayment is delayed. But take care that money does not sour your relationships; be professional in your dealings with them and get a formal agreement drawn up in order to put
terms of
loan in writing.
5. Venture Capitalists: Venture capitalists are professional investors who may be in charge of a large pool of capital gathered from a range of sources. These firms invest in new, even high-risk or speculative businesses without a proven track record, with
potential for rapid growth and high returns in a short time. Take a look at www.vfinance.com to get you started on this line of credit.
6. Angel Investors: Angels investors are relative to venture capitalists and usually less demanding in
returns they expect. These are private investors who expect their investments to make more money than through
traditional markets. An angel investor could be your doctor, accountant or attorney who seek out new businesses to invest in return for equity ownership. Also see: www.angel-investor-news.com
Some other good sources of funding are Industrial banks, home equity loans and loans on credit cards. Some other not so obvious ways of raising capital can be equipment leasing and advertising. Another area, which you can explore, is personal grants from corporates. For more information take a look at http://www.fdncenter.org/funders/grantmaker/index.html
So arm yourself with a solid business plan, determination and
right kind of information on what investors are looking for. You will hit
ground running with some of these ideas above.

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