Previous articles looked at external and internal finance sources that small businesses
can take help from during these difficult times. This article will explore some
personal options.
Savings and investments
If you are trying to quickly fund a project or the business as a whole, you can
use your personal savings. Since the
money is yours, you will not have to experience the pressure of repaying back a
loan. The usual process for those opting for this source of finance is: giving
notice of withdrawal on their investments, withdrawing their accrued savings
and using this for their official business capital amount.
Nonetheless, you should never use all your money for your company
because there are some risks involved. With the pandemic, we are living in
uncertain times. As such, you must consider the possibility that you might not
get the funds back.
Sale of personal property
Putting these types of assets on the market is a fund-raising strategy
that is commonly used by entrepreneurs or startups who find it difficult to get
loans or who do not want to fall into debt but still need to finance
their business. However, like the option mentioned above, you must ensure that
the property being sold is not essential for your daily life because you do not
want to be on left on the road.
Using your own savings means no debts ©Royalty-free image
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