Topic: Would you prefer getting a loan for a startup or getting an investor? (Read 839 times)

Who doesn’t think their idea is a big one? If it isn’t, why then would they pitch the idea? For someone to talk about finding investors or taking loan, they are already confident in the idea, after all, you will have to convince the investor that it can be a very successful project before he/she will invest. So everyone always has that trust. Instead you should talk of risk level. Despite how big you think the idea is, you have to consider the risk involved and compare if it’s worth the possible result in the end, etc.

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

Looking at the current situation I seem to prefer to do it by embracing investors rather than borrowing for business ideas.

I have experienced the option of making loans to the business that I did even though it was classified as not too failed but when we do it with loans then of course we will be chased to repay the debts that we do which is not a comfort. Although it is true that debt is not bad for doing business, when we cannot control debt properly then indeed this will make a difficult situation for us to go through so that this will have an impact on the business you are doing.

Instead of something like this happening, it will be more possible if you do business maximizing personal capital first and if possible there are investors this is also a good addition because apart from capital support at least with the presence of investors we will be more able to make some good solutions, especially for internal business problems we become have a big responsibility because it is not only about our capital but about the capital of others who become our investors.

If you failed ut manage to prove that you already did everything according to your road map then you don't have any liabilities with your investors, unlike with loaning your start up capital, if you failed you need to repay your loan and you are subjected to return the money or else legal actions will take place against you.

It's important to understand the trust you have from your ideas, if you think that there's a big chance that it will prosper along the way, then barrowing money is your option that will allow you to earn everything after the success, unlike with investors they have that percentages with the earnings that your project earns.

Borrowing money will make us uneasy with loans and will also make us a burden on our minds, where when we start investing but haven't made a profit, we will continue to be haunted by loan collections. Over time, we will feel uncomfortable with continuous collections. It's safer when we get investors where the profits are shared by both of us as well as the losses we bear equally, and the advantages of our investors are continuously monitored and given good input for our good in trading.

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 If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

Borrowing money will make us uneasy with loans and will also make us a burden on our minds, where when we start investing but haven't made a profit, we will continue to be haunted by loan collections. Over time, we will feel uncomfortable with continuous collections. It's safer when we get investors where the profits are shared by both of us as well as the losses we bear equally, and the advantages of our investors are continuously monitored and given good input for our good in trading.

I see loaning as set back
I would get an investor to start the business with rather than getting a loan
I know what loaning has done to my parents and I don’t intend getting myself involved with anything pertaining loan .
I’m staying clear off it fr

Indeed, that’s all it cost when you have an investor, that’s the major point with which we can say that investors are better than loan because all you have to apply is as much as your intellectual property of the said business, if it fails, you just have to prove that you did your best. But it would be great if you could make it work out because it’ll leave a track record that you’ve done something with an investor and it went well. Just in case you have future ideas and would need investors again. It is something that would boost their confidence.

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

Considering these two options that's one of the easiest to get, taking a loan sometimes comes with a whole lot of strict terms and conditions and  with the high interest rate expecially in my region, it's even deficult to put that as an option. Looking at the case with most investors who are just looking for ways to double there already dormant funds, and care little about the owner of the business, it seems to be another problem dealing with them as most of the ratio they intend getting from you seems to be too big expecially when they already know that your proposed business have an higher chance of doing well in the long run.

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

 If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

Having an investor is not like doing a partnership. You may not understand, but if you borrow money from someone or someone else invests money in your business, then you set a profit limit in which you have to give the profit to your investor. Yes, if you have a partner in your profit, then he can interfere in your business and you can say that your business is in the hands of someone else. But if you have good investors, you only have to give benefits to your investors and not involve them in your business.

I think it is much better than borrowing to find good investors who keep giving them a fixed amount because debt is something that once a person takes, he can never get out of debt. If you borrow from someone and he stipulates that you have to pay interest on it, it can be more dangerous for you. I don't think his business can be more successful than if you have a good investor and you decide that they will have a profit in your business, then you give them that much money every month.

Having an investor is not like doing a partnership. You may not understand, but if you borrow money from someone or someone else invests money in your business, then you set a profit limit in which you have to give the profit to your investor. Yes, if you have a partner in your profit, then he can interfere in your business and you can say that your business is in the hands of someone else. But if you have good investors, you only have to give benefits to your investors and not involve them in your business.

I think it is much better than borrowing to find good investors who keep giving them a fixed amount because debt is something that once a person takes, he can never get out of debt. If you borrow from someone and he stipulates that you have to pay interest on it, it can be more dangerous for you. I don't think his business can be more successful than if you have a good investor and you decide that they will have a profit in your business, then you give them that much money every month.

That is actually quite smart but how hard could it be to try and learn things by yourself first before trying to bring in other people to meddle with your own business? Consultants are okay but once you start bringing people in that could alter the direction of your business, it might become too complicated.

There is no shame in being a beginner and learning how things work first and maybe even making a few mistakes. Seems better than letting the decisions be ran by other people who might even do some work before your back.