business advantage term loan

Money is an important part of doing business. Be it initial capital or running a business. Private capital is never enough in the long run. However, the amount of money to be borrowed and the source of it depends on the scope and type of business. How can an entrepreneur finance a startup startup? Saying a few ways. Rashedur Rahman and Jubeli Khanam.

business advantage term loan

Bootstrapping or self-financing

In order to start a startup, it is important for a person to have some savings, which can be used to start small. Starting a business with money you have saved or money from relatives and friends is called bootstrapping. Keep in mind, however, that such a source may not be the only source of trust for a large business. These come in handy in small enterprises. Small enterprises are much bigger later on, but initially they don't need much money. If you look at today's successful entrepreneurs, many of them started their journey with very little capital. Syed Manzur Elahi, the chairman of today's well-known Apex Footwear Limited, started the business with a capital of only Tk 15,000 with a monthly salary.


Thanks to the development of technology, this social platform is slowly developing quite successfully. In this platform, an entrepreneur initially presents his thoughts or challenges to a group of individuals or investors. If anyone is interested, he can pay to make the idea a reality. In this way a business is formed with the money given by one or more people. Bangladesh has a crowdfunding platform called (

The biggest advantage of this process is that not only does it provide money, but it also becomes a cost-effective initiative for the general public to learn about. But the main challenge is that the platform is much more competitive. So with good enough 'ideas' you have to resort to crowdfunding.

In 2014, Facebook bought an organization called Oculus for 200 million, which was also established through crowdfunding.

Angel Investors

You are probably sitting with a great idea in your head. And thinking with his hand on his cheek, if any investor would invest in this business of mine! But the idea is not skyrocketing. There are many investors who are ready to invest large sums of money. They are called 'Angel Investors'. The culture of such investment is slowly developing in Bangladesh. Such facilities are mostly city-centric. These types of investors tend to be quite wealthy, who basically want to invest in new entrepreneurial ideas. Out of the many types of ideas, investing in the most appropriate venture is the one that is most meticulously analyzed. Angel investors can live alone, or invest as a team. Bangladesh Angels was inaugurated on October 4 in Bangladesh. Entrepreneurs or investors can apply for the fund through this link:

The biggest examples of how big and successful a startup can be with the contribution or funding of angel investors are, Starbucks and Apple. These institutions started on a very small scale. When it was not possible to do business properly due to lack of funds, they expanded their business through angel investors.

Venture capital

In the culture of Bangladesh, various banks are still the main source of people's credit for business loans. It is not always the case that the bank is a good decision to take a loan. Because, in our country, banks basically feel comfortable to enter into agreements with known customers. Apart from that, in the case of loan disbursement, the income-expenditure of previous years, collateral, acquaintance, guarantee of any director of the company, etc. are sought. While this is in favor of an established business, it is not in favor of an entrepreneur starting from scratch. In this case, venture capital is the best decision. Where a new business idea is fraught with risk, venture capitalists tend to take risks. At present, more than 11 venture capital firms in Bangladesh are working on full-fledged venture financing including registration. New entrepreneurs should ensure the provision of venture capital for business financing.

The best companies in the world are established in today's world with Venture Capital. WhatsApp,, King Digital Entertainment, which created the Candy Crush Saga game, have all financed their businesses through venture capital.

Business incubator

Just as an immature child is placed in an incubator to give it its fullness, the idea of ​​an incubator is also prevalent in business. Various ‘business incubators’ are coming forward to make the business of young entrepreneurs successful. In our country, though slowly, this culture is developing quite well. The Government of Bangladesh attaches importance to such 'incubation' projects to create an entrepreneur-friendly environment. Rafi Mizan Khan Chowdhury, founder and CEO of Ten's 360, an incubator at BRAC University's Business Incubation Center, said from his personal experience that at one time they could not run a business due to lack of money. Eventually they succeeded by proving themselves through a business idea competition at BRAC Business Incubation (BIC). By getting the opportunity to come to the incubation, they got an office, necessary directions and Rs 50,000 as capital. Through these aids in incubation he has since become a successful entrepreneur and his team is now working to help others.

YY Group, a business support platform in Bangladesh, is now doing very well in incubation. They are providing capital as well as training, advice, work placement and various support for entrepreneurship such as marketing and technical assistance for entrepreneurs.

Apart from that, financing, mentorship, work place etc. are also arranged for new entrepreneurs through Startup Bangladesh's Idea Project. Admission Ninja, App Bazaar, Beautiful Barisal, Hello Laundry etc. have been developed through this project of Startup ICT Division.

Prize money from various competitions

There is a regular competition to come up with new ideas. Such competitions are basically an attempt to bring out extraordinary initiatives. The 'prize money' for the best ideas in the competition is no less. For an entrepreneur, such award-winning money plays a very important role in starting a business.

Such events are held on a very large scale in different countries of the world. In 2016, 11 startups were funded for বড় 36,500 through Myanmar's largest startup competition. Through this, the identity and scope of work of those organizations has increased a lot. New and ongoing startups are also funded through the Founders Valley Contest for the Asia region.

Banking institutions

In the current culture of Bangladesh, the first attraction for entrepreneurs for business loans is the bank. Almost all banks in Bangladesh have loans for both established and new businesses. The SME Foundation is currently providing loan assistance through 3 banks. Apart from that, other banks have arranged loans for different sectors keeping in view their own rules as well as the regulations of Bangladesh Bank. An entrepreneur should understand that he should take a loan from any bank for the sector in which his venture is associated.

● IDLC startup loan: up to Tk 25 lakh, time: 5 years.

Employment Bank can provide loan up to Tk 2 lakh without collateral. Various initiatives are being taken to further increase the amount of money.

‘Mutual Trust Bank's 'Small Business Loan' is available up to a maximum of Rs 5 million. Of this, no collateral is required up to Rs 5 lakh. The term is 5 years, but in order to get this loan, the business period should be at least 1 year.

IFIC Edge Women (Women Entrepreneur Loan): These loans are provided by grassroots women entrepreneurs for small and cottage industries. This special loan has been arranged for those who are mainly involved in Jamdani, Nakshikantha, boutiques, various handicrafts, beauty parlors, catering services etc. and who are not getting any other financial benefits from the bank. To avail this loan facility, a woman entrepreneur has to be associated with that business for at least 2 years. This is basically a 'term loan'. Equity and Entrepreneurship Fund, Bangladesh Bank: For software, food processing, agro-based industries.

IDLC innovation loan: minimum 5 lakh, unsecured loan 25 lakh, partial secured loan maximum 1 crore. The term of the loan ranges from a minimum of 13 months to a maximum of 60 months. Those who are members of BASIS get priority and special benefits in obtaining this loan. Apart from that, 2 years business experience is mandatory but 1 year experience is enough for women entrepreneurs. The age of the entrepreneur should be between 20 to 60 years.


Various internationally recognized NGOs in Bangladesh, such as Grameen Bank, BRAC, Asha Bangladesh, etc., provide loans for small and cottage industries under the micro loan scheme. They are mainly looking for grassroots entrepreneurs for whom microfinance is more important.

Government project for startups

At different times the government seeks ways to solve ongoing problems through different projects or competitions. Apart from that, there is also an opportunity to provide capital for startups through various programs. In that case an entrepreneur submits his idea, then the committee accepts it after judging and analyzing the funds. Such government projects and programs are very effective in financing startups. Various ministries often undertake such projects.


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