Loans
Borrow money from a bank or lender.
You receive a fixed amount of money up front, and pay it back in monthly instalments with interest on top. You don't give up any ownership of your company, but you do take on a monthly obligation and even in months when business is slow.
- Source: banks, NBFCs, online lenders
- Cost: interest rate (e.g. 8–14% / year)
- Best when: revenue is steady and predictable