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DARE is a media platform for the Indian Entrepreneurand the Entrepreneurial Ecosystem.

Dare IS NOT just a business magazine

Dare seeks to enable aspiring entrepreneurs to starttheir own businesses, and enable the established

entrepreneurs to take their business to the next level.

DARE is published by CyberMedia.

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DARE is a media platform for the Indian Entrepreneurand the Entrepreneurial Ecosystem.

Dare IS NOT just a business magazine

Dare seeks to enable aspiring entrepreneurs to starttheir own businesses, and enable the established

entrepreneurs to take their business to the next level.

DARE is published by CyberMedia.

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This edition of the magazine talks about how tofinance ones business.

1. How bankable is your project.

2. How to get money to start a new business?

3. Applying for a loan.

4. The devil called Collateral

5. Venture funding

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This is one of the most important questions a startup orexisting business will have to address.

A business is bankable if it can obtain all or a majority ofthe financing it needs from a commercial lender.

For being bankable, a business has to encounter thefollowing questions: Do you have a good personal credit history?

Have you filed and paid all taxes due for personal and/orbusiness tax returns?

Do you have money of your own to invest in your business? Does your business have a positive net worth? Can you demonstrate that your business has the ability to repay

the loan?

Do you have experience in running your own business?

Does your business have business advisors?

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How to finance a franchise -- for new Entrepreneur?- for exiting Entrepreneur?

Different ways to get loan/ money :- Franchisor sources- Bank funding & govt. participation- Funding from friends, relatives- Credit card, collateral& personal loan

- Venture funding

Good luck on finding your loan & for the success of yournew business

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Collateral is a dreaded ten-letter word amongstentrepreneurs.

Performance is not the only benchmark for getting aloan.

The mortgage value for collateral security is morethan 13 times than the loan amount.

The only criteria for a businessman to get a loan is to

fulfill the collateral. Economic visibility & Technical feasibility is not half as

important.

Potential business cant come up.

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While RBI has prescribed ceilings on collateral as acertain percentage of the loan amount for SMEs, thebanks follow their own way to determine it.

The variable collateral value fixed depending uponthe entrepreneurs Risk factors, credit rating,infrastructure, knowledge, experience & many suchfactors -AGM, Syndicate Bank

The variable collateral value fixed depending uponthe entrepreneurs 50 odd parameters - AGM,Bank of Baroda

Alternatives are:

Unworthy alternatives

Collateral free govt. schemes.

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