How can we raise funds for a proprietorship firm?

Sources of fund raising can be internal or external. Whereas there is no restriction on raising funds from internal source, a proprietorship firm can approach limited external resources.

Raising funds from personal funds or bringing in funds from relatives or friends can be an option as internal funding. The proprietor can alternatively avail loans from banks and financial institutions or the scheme (if any) declared by the Government.

However, the proprietor cannot raise funds from public issuing shares or other securities. Angel or Venture Capital funding may be difficult in case of sole proprietorship firm due to certain limitations like equity funding and credibility, etc.

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Consult some financier 

as suggested it is not legal issues, so better to consult a fund management consultant or chartered accountant.

The advertisement was in the guise of the query.  Every sole proprietor can raise any loan through Bank or relatives or by private lenders by offering security.  The presumption is that a sole proprietor is a small start-up for livelihood, and he may not have the capacity and expertise to use Legalwiz for availing of finance.  After mobilizing the initial capital only an entrepreneur goes for a business.

A sole proprietor can raise funds both from internal or external sources. It can bring in personal funds or borrow from relatives or can take loans from financial institutions. It cannot raise funds from public.

The Sole proprietor and partnership have limited avenues for raising capital.

1. Investment of own savings.
2. Raising loans from friends and relatives.
3. Arranging advances from commercial banks.
4. Borrowing from finance companies.

Besides by, 

Effective liaising and networking with:

• Investment bankers
• Commercial Lenders
• Professional advisers, and
• Consultants who can assist and get the Business Proposal into the appropriate hands of the source of funding or financial institutions or banks.