You have that perfect business idea that you believe can turn your dream of owning a business into reality BUT what you lack is the capital to support your idea. Despite the fact that there are some small businesses that can be initiated without much of a preliminary investment, your circumstances may call for financial assistance to roll out and run. You would require finances for giving down payments for your business location, equipment for business operations or paying out the initial salaries of your employees. But don�۪t worry, you have got the following four ways to finance your small business in Pakistan:
The primary choice for your business funding would be utilizing your own funds or savings. On the other hand, if you are planning to start your business in a few years, you can invest your current savings in mutual funds offered by many local banks in Pakistan or you can just keep aside a certain amount of cash every month from your income to cover the future business expenses.
Angel funders, angel investors or seed investors could be your next option for financing your venture. These funders are the ones who take interest in other peoples businesses and choose to lend them money so that they can start up the things. So, if you become successful in grabbing the attention of an angel funder, he might ask you to discuss your business idea in detail and sign a contract for repayment. There are many websites in Pakistan that can connect you to angel investors like https://www.angelinvestmentnetwork.com.pk/ and https://angel.co/pakistan/investors etc.
A number of banks in Pakistan offer loans to smes; read here: https://www.ledgermax.pk/blog/loan-small-business-pakistan/. All you have to do is apply for a small business loan from any local bank and carry out the formalities as they generally ask for loan application, your business plan and plan of loan usage etc.
In Pakistan there are a few business support associations and institutions that also provide financial backing to new entrepreneurs or business owners. Though, there are some criteria to become eligible for the grant money; for example, some institutions require completions of certain training programs or some groups offer grants to women who wish to initiate their own small business.In short, if you believe in your business plan and the only thing that is stopping you is finances then look into the above mentioned options for business finances. However, it is important to note that an exciting business plan is vital to any attempt you make for acquiring financial support from someone else, plus it will also assist you in making reserved and smart choices while spending on your business idea.