No Bank/FIs will fund Start up due to lack of previous track records. Learn 38 different practical ways how to raise funds for startup business in India
In this video tutorial, we discuss – How to raise funds for startup business in india and how Startup Entrepreneurs can Raise Business Capital by 38 Different Practical Ways, which can be implemented right today. The biggest challenge that all Startup Entrepreneurs face all over the world is to raise startup business capital & funds for their business to get started since no bank or financial institutions would entertain them due to lack of previous track records.
Governments, Big banks & financial institutions all over the country talk “Very Big” about encouraging “Startups & Start up entrepreneurs” in the country and in fact every State wants to outdo the other. In fact many attractive schemes have also been doled out.
But very sadly all these remain only on paper. What is the real truth & the hard reality on the ground? Do they mean, what they say? Find out more in this video tutorial and also in my other discussion which would give you more insight. Just check out www.whybanksrejectloans.com .
In reality, NO Bank or financial institution will entertain Startup companies, Start up entrepreneurs, Solo & Micro-Entrepreneurs as they do not have any attractive Balance Sheets, Sales records, or previous track records to prove. Banks & Financial institutions have so many different criteria which Start up companies and startup entrepreneurs cannot simply fulfill. In fact banks have found out more ways to reject loan applications even for established players. Then just imagine for new start up entrepreneurs, when they do not have any previous track records to talk about.
At the maximum, banks would fund, only those start up companies, which is associated with some big business house or a sister company of some big business house or a company promoted by children of some big business people.
I don’t think any new Start up company has been funded in India till now, purely based on the “Concept, the Idea, future business potential, its innovation or its ability to create Jobs in the country”.
However the great concept or idea may be, if previous track records are not there, banks & financial institutions, simply do not care.
The one & the only possibility of new start up companies getting any kind of funding from any bank or financial institution is by mortgaging, pledging & by giving “Collateral Security” of your own house or by way of “Loan against Property”.
As a matter of fact, just for my knowledge & curiosity, I have filed an RTI application under “Right to Information Act” with State Bank of India, the leading Public sector bank and HDFC Bank, the leading bank in the private sector in the country, seeking details on the above matter. SBI has denied the information & the HDFC sent back my RTI application itself after opening & reading my RTI application. I have resent my application to them but till date (@ 21/02/2022), I have not received any information from them. This is the sorry state of affairs.
