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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