Cash is an important ingredient for any business. Cashless business is always suffering from starvation. Cash is considered to be an important financing option that is used in business. The advantage with cash is its liquidation power. The problem arises when a business is out of funding and hence the need to consider other ways of financing.

Loan against assets:

Loan against assets is a good finance option. There are situations where the amount required has exceeded the cash in hand. In that case liquidating assets are not the best solution. Instead of liquidating, it is better to take a loan against the asset. As and when the business progresses, the loan can be settled and the asset will remain intact in this whole process. Assets can be the factory land or the machinery.

Gold loans are another answer to finance starved business. If you are about to start a new business but is unable to generate sufficient capital, then the gold loan is the best option. The gold`s kept in the locker will not multiply. Selling it off will be a bad decision as you as liquidating a valuable asset. If it is kept as a guarantee and the required amount is raised, the business will stand. Here the chances of recovery of the asset are pretty high. This is effective for small entrepreneurs.

Grants:

Grant is a good option for technology business. There are many government organizations, ready to finance technology business. The twenty first century is totally dependent on technology. Every day more and more research is being conducted to make man`s life much better. Technology companies have a research and development cell. Showing this research and development cell, technical companies can earn a huge amount of grant. If the plan is a successful one and the product is a real boon to the mankind, the company is sure to get hundred percent investments for the same as grant.

IPO:

Initial Public Offering is another way to raise funds. Brands or companies who have a very good market reputation can ask for public for financing. A public offering will be made through the stock exchanges and people will buy shares of the company. The stock will be listed on the exchange. The company through an initial public offering will get a huge sum and in return will have to share its profit with the stakeholders. This is called venture capitalist way and has an advantage of raising further funds as and when deemed necessary. The growth of business in this case needs to much faster.

Family and Friends:

Friends and family financing is best for small entrepreneur's. An entrepreneur starting his business can approach his family and friends for help. Though people investing will always analyze the risks involved in the business and then only invest, but money in this situation comes much faster than any other means. There are a lot of legal formalities involved with this and hence people raising funds from families are advised to stay professional. The disadvantage with this sort of fundraising is this is one time funding. You cannot approach the same person for financing if you have previous debts.

Author Bio:
This is a guest post by Alia Haley. She is a blogger by profession. She loves writing on technology and luxury. Beside this she is fond of cell phones. These days she is busy in writing an article on Luxury yacht and Burberry Handbags.