Topic: Would you prefer getting a loan for a startup or getting an investor? - page 3. (Read 839 times)

People who take loans to do business, most of the time spend extra money by borrowing extra money. They sometimes sell business goods to pay off the loan. We should borrow as much money as we need to do business.  Borrowing more than a few people will lead to problems. So those who have smart business sense will never covet for extra loans.

People who take loans to do business, most of the time spend extra money by borrowing extra money. They sometimes sell business goods to pay off the loan. We should borrow as much money as we need to do business.  Borrowing more than a few people will lead to problems. So those who have smart business sense will never covet for extra loans.

Running a business definitely requires a lot of capital which one cannot meet with just his own pocket money.  So everyone has to go towards more or less loans. Business loans are an important thing.  However, many types of calculations must be completed while taking this loan. one borrows more than necessary and wastes that money, then he will be in great danger and will not be able to profit from the business. His business will fail

Taking a loan to start a business from scratch is a huge risk because most businesses takes minimum of five years to stabilize. Depending on the nature of the business, the first few years are always full of trial, surprises and a lot of things that can make the business fail. Imagine taking a loan and the business fail, that is depression knocking at the door. Most loans I see in my country matures in three years and at most five years. In this case, the possibility of defaulting on this loan is high which is not good for a new business. Therefore, I will prefer pitching my business ideas to investors on the agreement of a share of the business. With this, I will not be under any pressure to repay loans that the profit form the business cannot even carry. 

That’s the hardest part, of course they also want to be secured knowing they will risk their own money for simply a startup. If I were a big investor, I would also be hesitant to invest in an uncertain project knowing that anytime it will fail and lose all my money invested.

That’s why If I have a brilliant business idea and I really think it will hit big in the future, then I have to suicide on it. I will definitely take a loan to make my investment possible, even if there’s still uncertainty if it will prosper or not.

 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?

You will be 100% happy when nobody knows anything about you. When you are running your business without the interfere of anybody, you are secure to some extent. although, you can not do it alone but when you are the real boss of your self, you are free to decide what ever decision you want to take. when I choose to go for a bank loan, I have the full control over it. Yes I know there are huge risks that are involve in going for a bank loan, if going for a loan will be more accessible and you have good ideas of what you are about to do with it, better take it and have the control and freedom. If you are afraid of risk taking, those who take it will hire you to work for them. So if I have technical ethics and business ethics, i will rather go for a loan. But if you are afraid of taking risk and that is what will stop you from going for loan, then ask your investors if he or she has ever taking risk, that is loan? the answer will be capital Yes!! if that should be the case, then why can't you do same? Our life is full of risks. Is better you take it than to work for those that took it since we can do it again and again If you fail don't quit get up and learn from the past mistake by so doing, there's hope you are going to be successful in the end.

A startup don't have a brand yet and that's why it's not a problem for those that are proposing and trying to look for an investor.

Investors understand that but the struggle is there if the project owners or proponents won't get trust easily by the investors. The reputation is what at stake for the investors but they typically invest not only because of the potential of the business.

But also because they trust the proponents.

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?

It has become commonplace for startups to try to get investors early in their development. Because by getting funding from investors, it allows startups to be able to develop their platforms in a more focused manner because usually investors will not only provide funding but also the network and support that startups need to be able to develop in the future. However, there are also startups that are trying to get a loan, but it will be riskier for them because they need to be responsible for their loan and are ready if their business becomes collateral for the loan.

A startup don't have a brand yet and that's why it's not a problem for those that are proposing and trying to look for an investor.

Investors understand that but the struggle is there if the project owners or proponents won't get trust easily by the investors. The reputation is what at stake for the investors but they typically invest not only because of the potential of the business.

But also because they trust the proponents.

Because partnering with investors is not as easy as we imagine, you must have a brand that is trusted and has a reputation in the market, then they will help increase your business reach more widely so that your business has the opportunity to compete in global business.

exactly! unless you are born rich with generational wealth and capable to build a business even at your youngest age, but if you are just an ordinary person who earns minimum wage amount, i'll find it difficult for you to save money for your planned business, that's why having an investors is essential and if you haven't find any investors that are willing to invest in your project then loan is advisable as long as you are capable to pay the amount you owed.

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?

Finding an investor isn't always an "option" for many people. I mean I had so many business ideas before, just going around asking people to give you their hard earned money, for % of just your idea makes no sense. You ask them to pay you for your idea and that is just idea nothing more.

This is why most people can't find a way to get investors, since they have no working product to show. In that situation, most of them do not even look for a loan neither, they could ask for a loan from a bank, but they do not trust themselves, I didn't, that is why they get nothing. But if I know that something will make me some money, then I guarantee you that I would just straight up look for something like a loan, if possible for a long term, it would be a lot better.

Running a business definitely requires a lot of capital which one cannot meet with just his own pocket money.  So everyone has to go towards more or less loans. Business loans are an important thing.  However, many types of calculations must be completed while taking this loan. one borrows more than necessary and wastes that money, then he will be in great danger and will not be able to profit from the business. His business will fail