How to secure money for your business project.

bank

Sone is a Cameroonian male living in Europe. Sone went abroad in order to seek for greener pasture and escape poverty in his home country. He has been nursing several ideas to start a business, however, he seems not to be able to mobilize the funds. Sone has the following options to raise funds in order to start his own business.

1) Use his savings.
Savings is money you put aside to invest. There are several ways to save money ranging from joining a savings club(Nchangi), making automatic deductions from your current account, hiding money under your mattress.

2) Borrow money from friends and family.
This another way Sone can raise money to start his business. He can reach out to friends and family relatives, tell them about his business, and persuade them to invest in it either against equity or in order to reap a little extra later.

3) Borrow from Financial Institutions.
Sone can approach several financial institutions including banks, credit unions, village associations and borrow from there. He would most probably be asked to bring a surtee or provide collateral security.

4) Sell Stuff.
Sone can sell some of his stuff to raise money. There are all types of sites and yard sales where you can sell some of your stuff. Selling his laptop, for example, can provide Sone enough money to start a business.

Sone can even decide to use several of these sources of funding. What is certian is that financial institutions would require that Sone show proof of possessing his own funds in order to get invovled. Which of funding would you choose if you were Sone. Register your thoughts below.

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