Presentatio,kkalajajajakakakakajahsbsgsn.pptx

Presentation

1. STARTUP FUNDING   

2. BANK LOANS MEANING ADVANTAGES DISSADVANTAGES PROCESS STATUS CONCLUSION

3. Meaning: Bank loans in the startup ecosystem refer to the financial assistance provided by banks to startup businesses. These loans are typically used to fund various aspects of the startup, such as capital investment, working capital, equipment purchases, expansion, or other business-related expenses.Startups often require external funding to cover their initial costs and sustain their operations until they become profitable. Bank loans are one of the common sources of funding for startups, alongside angel investors, venture capitalists, and crowdfunding.

4. Advantages: 1 . Access to Capital: Bank loans provide startups with the necessary capital to start or grow their business. 2. Lower Interest Rates: Compared to other forms of financing, such as credit cards or private investors, bank loans generally offer lower interest rates. 3 . Flexible Repayment Terms : Banks often offer a variety of repayment options, allowing startups to choose a repayment schedule that aligns with their cash flow.

5. Advantages: 4. Building Credit History: Taking out a bank loan and repaying it on time can help startups establish a positive credit history. 5. Enhancing Credibility : Securing a bank loan can enhance a startup's credibility in the eyes of suppliers, customers, and other stakeholders. 6 . Tax Benefits: In some cases, the interest paid on a bank loan can be tax-deductible, reducing the overall tax burden for startups.

6. Disadvantages: 1 . Strict eligibility criteria : Banks typically have strict eligibility criteria for granting loans, particularly to startups. 2. Limited funding options : Banks may be hesitant to provide loans to startups due to the higher risk associated with their early-stage nature. 3 . High interest rate s: Banks often charge higher interest rates on loans provided to startups compared to established businesses.

7. Disadvantages: 4. Limited flexibility : Bank loans typically come with fixed repayment schedules and terms. 5. Personal guarantees and collateral requirements : Banks often require personal guarantees and collateral from startup founders or owners to secure the loan. 6. Lengthy approval process : The approval process for bank loans can be lengthy and time-consuming.

8. Process:

9. PROCESS:

10. PROCESS:

11. CURRENT UTILIZATION: 1.Working Capital. 2. Equipment and Technology Investments. 3. Expansion and Growth. 4.Marketing and sales Initiatives. 5.Research and Development. 6.Bridge Financing.

12. Example: The maximum amount of loan that can be availed will depend on the lender and other factors such as the annual turnover of the company, your credit history, etc. For example, under the Mudra Loan , up to Rs. 10 lakh can be availed under a startup business loan.

13. Conclusion: Bank loans play a vital role in the startup ecosystem by providing startups with access to much-needed capital for various purposes. Startups utilize bank loans for working capital, equipment and technology investments, expansion and growth initiatives, marketing and sales activities, research and development, hiring and human resources, debt consolidation, and bridge financing. These loans enable startups to fund their operations, seize growth opportunities, innovate, and achieve their business objectives. However, it is crucial for startups to carefully evaluate their financial needs and consider the terms and impact of the loan on their cash flow before deciding to take on bank loans. Seeking advice from financial experts can help startups make informed decisions and maximize the benefits of bank loans in the startup ecosystem.