The common and big challenge for the small businesses is raising the start up capital funds. There are so many ways like getting the loans from the banks, third-party investors and other external sources. Lending to the start up businesses is more risky for the external agencies compared to the established and existing businesses. Moreover, the borrowers are likely to end up paying higher cost when they borrow from the external sources. By negotiating with the various agencies, the borrowers can end up with lesser cost start up loans.
Money can be borrowed from the family members or friends to start the business. However, it may not be feasible to repay the loan within a short time unlike in the case of formal financial lenders. Hence it would be better to have a written contract with the friends and relatives for the amount they invest to avoid conflict at a later date.
Another source of rising the funding is by way of government grants. It is very difficult to get the government grants for small businesses as the government would be willing to give the grants only to non-profit organizations.
There are many government grants available for the entrepreneurs. These sources of finance can help the enterprise to become established and help with the development costs. They can also provide the much needed encouragement to a struggling small business. The grants provide money to purchase equipments, buy premises for running the business, create new job opportunities and maintain the existing employment. The grants awarded by the government must help the business to expand, to become modernized and more efficient.
Small business grants are made available for purchase of the following test equipments for businesses which require funds for expansion.
1. Electronics for testers – for material testing system.
2. Hydraulic test equipment – Measure flow, pressure and temperature speed.
3. Tensile Testers – complete range for packaging, paper and film.
4. Material testing machines – For bending, tension and compression etc.
5. Test Equipment – Instruments for time and frequency calibration, measurement and analysis.
There are two types of grants – government and corporate – available for the entrepreneurs. The grant givers look for only existing businesses so that the money could be used for the worthwhile projects like purchase of new equipments for expansion, providing training to specialized groups so as to develop a self-sustaining program.
The small businesses looking for expansion by way of equipment purchase should apply for the grants that will be applicable for the specific needs while filing the grant application. It would be better to take the advice of the experts or professional grant writers so that it becomes easier for applicants to get the grants faster without facing any problems. Though there are plenty of grants available, it depends upon the efficient way the needs for the funds are presented by the applicants so as to align with the mission of the grant givers. Keeping in good contact with a person in the grant organization also helps to get the grant awarded in favor of the applicants.
Small Business Grant Source:
Learn the application procedures, various funding sources for specific types of businesses and eligibility criteria for small business grants. You can find the most comprehensive information on availing of small business grants by visiting this online guide on grants here
Apart from the Government, there are several foundations that liberally offer grants for several purposes. Visit this Grant Foundation Guide to know how to avail of free grants from private foundations. Also, check out the Education Grants Guide to find the best sources for all types of education grants.