6 Factors to Consider When Funding Your Business in India

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Dear Navneet,

India attracted the highest ever foreign direct investment inflow of US$ 81.7 billion during the financial year 2020-2021. With a favourable policy regime and business environment, it is an optimal time for foreign businesses to setup in India.

However, newly established businesses often require external financing which can come in the form of debt or equity. Businesses must carefully weigh the pros and cons of each option as too much debt can cripple a business and impact cash flows while on the other hand, equity investors might not agree with certain business decisions leading to potential conflicts.

Therefore, funding decisions require careful analysis and prioritization of several key factors to determine which option will be most beneficial for the business in long run. Below we share six key considerations that businesses should keep in mind when choosing a funding option:

Choosing the right funding type can be challenging as it depends on several factors such as predictability of the company's cash flows, existing obligations, expansion plans, among others.

Our advisory experts can assist you in selecting the right funding type by carefully analysing your short term and long-term business plans and preparing a customized report to highlight and compare all viable funding options for your business. Further, depending on the outcome of the report, our team of experts can assist in obtaining the desired funding along with taking care of all the required compliances and regulations.

Get in touch with us today.

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