Funds required for an organization

All organizations and businesses have some operational expenses and need some initial investment and if the owner or founders are not interested in contributing from their own savings, the organization should find some other source of funds or it will be closed.

Usually the small business owner or founder will approach a bank or lender, who may or may not be interested in helping them especially if the business model is not proven.

Few commercial organizations can afford to lend money when the chances of non repayment of the funds will be high as recovering money from defaulters can be a difficult task.