InvestorQ : various sources of own capital of the bank

various sources of own capital of the bank

1 year ago
A bank can raise finance from multiple sources for making its initial capital. The initial capital of a bank is the money that the bank brings in when it starts the business and is the base money introduced to smoothly run the activities of a business. Here are various sources with which a bank can raise finance:

Personal Funds: This is the own capital of the individual himself, along with other contributors, and generally comes from one’s savings or through the redemption of investment.

Friends and family: These are the people who have faith in the entrepreneur and lend him money either interest-free or on low interest.

Crowdfunding sites: These are the sites where various investors come together and pool their resources to be injected into a new business or previously established business.

Angel networks: These are the people with high capital in hand, and they invest in the entrepreneur by providing seed funding to new businesses.

Startup launching platforms: These platforms boost the Startups which are looking to be launched soon and helps them gaining investors and other benefits.

Other financial institutions: Just like banks, several financial institutions lend money to new businesses.

Private equity firms looking to invest in new business: Several private companies want to own a stake in another company, so they invest in the business in return for ownership in the company.