Getting a loan or Self Investment?

[Anis Boukezzoula]

choosing the right finance when starting a business is very important to be successful in your plans.

Some people use their own personal savings to provide for their own business but this can be risky and may not be able to cover all the funding you need that's why the other category of people takes a loan to get going.

What's the ideal choice for you?

everyone talks about the loans in his country to expand our knowledge, please

 

[Treborika]

For one to succeed in the set business, one must start their business using personal savings. It is then financially advice that, one should take a loan only to expand or grow business.
The type of the loan must be a business loan from a well established financial institutions and be repayable on annual basis.

 

[glitch]

For me, self-investing is the better option but not always on the table. For most people, getting a loan makes the process easier and faster. If I were to start up a businesses right now, I would either have to use my downpayment savings for a house or continue saving for several years.

 

[Godspower]

For me, self-investing is the better option but not always on the table. For most people, getting a loan makes the process easier and faster. If I were to start up a businesses right now, I would either have to use my downpayment savings for a house or continue saving for several years.

I will agree with you on this one. I'd rather use alll my life savings to start a business instead of taking a loan from financial institutions. Loans come with high interest rates and it might be difficult to repay it.

 

[glitch]

I will agree with you on this one. I'd rather use alll my life savings to start a business instead of taking a loan from financial institutions. Loans come with high interest rates and it might be difficult to repay it.

Yup and interest rates are only getting worse. I know in the housing market, things are going up more and more. People are worried that it will cripple it. I would imagine business loans have higher interest right now as well.

 

[Good-Person]

I have never been in favour of borrowing money from people. I borrow a really tiny amount of money in order to deal with the problems I face, but I do not borrow money that I cannot pay back.

 

[Billy]

Well, getting a loan can be a great way to get started with your business. Loans can provide you with the funds you need to cover the costs of starting up, such as renting office space, purchasing equipment, and hiring employees. Additionally, loans can help you grow your business by giving you the capital you need to expand operations or invest in marketing campaigns.

However, taking out a loan also comes with some risks. You'll need to make sure you can afford to repay the loan on time, and if you're not able to do so, you could end up facing penalties or even bankruptcy. Additionally, not all businesses qualify for loans, so you may need to look for other funding options if your business is still in its early stages.

Self-investing can be a great way to finance your business if you have the funds available. When you self-invest, you use your own personal savings to cover the costs of starting and running your business. This can be a risky move, but it also has its advantages. For one thing, self-investing allows you to maintain full control over your company and makes it easier to make decisions without having to worry about outside approvals. Additionally, self-investing can help you avoid paying interest on loans, which can save you money in the long run.

However, self-investing also has its downsides. If your business fails, you could lose all of your invested money. Additionally, self-investing may not be an option for businesses that need a lot of start-up capital.

Ultimately, the best option for financing your business depends on your specific situation and needs. It's important to weigh all the pros and cons of each option before making a decision.

 

[Godspower]

Yup and interest rates are only getting worse. I know in the housing market, things are going up more and more. People are worried that it will cripple it. I would imagine business loans have higher interest right now as well.

Very well. And with the way things are going, it is very unlikely that these financial institutions will reduce these interest rates soon. Business owners are going to be very much affected in the long run.

 

[Good-Person]

Very well. And with the way things are going, it is very unlikely that these financial institutions will reduce these interest rates soon. Business owners are going to be very much affected in the long run.

These financial institutions will never reduce interest rates because they are dealing with the issue of inflation. This means they are burdening their consumers.

 

[glitch]

Very well. And with the way things are going, it is very unlikely that these financial institutions will reduce these interest rates soon. Business owners are going to be very much affected in the long run.

Everyone gets affected when the economy is hit. It usually started in one area and trickles down. Someone I know had his office rent jump up 40% just a few months ago out of the blue so he is looking to relocate his business.

 

[tyrim88]

well when it comes to the issue of funding and getting adequate funding for a business,one should not be very tempted to go for loans from a commercial bank,because the business have not experience the real sector yet on how to respond to the market in terms of revenue ganeration.

 

[Godspower]

well when it comes to the issue of funding and getting adequate funding for a business,one should not be very tempted to go for loans from a commercial bank,because the business have not experience the real sector yet on how to respond to the market in terms of revenue ganeration.

thank you for taking time to emphasize on this. Instead of taking loans from banks and other financial institutions, borrow from friends and family members because they are likely to be more considerate.

 

[tyrim88]

thank you for taking time to emphasize on this. Instead of taking loans from banks and other financial institutions, borrow from friends and family members because they are likely to be more considerate.

That is just the best thing to do at that initial period when the business is trying to get to its feet in the business environment,because the business have not really gotten to a level where it has a constant structure of consistent revenue inflow.

 

[Danny4cash]

Getting loan to start business is good, but risky. What I can advise people to do is to start the business first with the little money they have and they obtain loan to expand the business. This will mitigate loss. It's very risky to obtain loan to start a business you have no knowledge about.

 

[Good-Person]

Everyone gets affected when the economy is hit. It usually started in one area and trickles down. Someone I know had his office rent jump up 40% just a few months ago out of the blue so he is looking to relocate his business.

taking big loans will cause more problem because there will come a time when you have to make a payment of your loans and this is the hardest part of getting loans.

 

[Godspower]

taking big loans will cause more problem because there will come a time when you have to make a payment of your loans and this is the hardest part of getting loans.

Taking loans to run a business puts you at a position of disadvantage. Loans come with high interest rates and most financial institutions usually demand collateral and other requirements which may be difficult to meet.

 

[Good-Person]

Taking loans to run a business puts you at a position of disadvantage. Loans come with high interest rates and most financial institutions usually demand collateral and other requirements which may be difficult to meet.

The main problem is mortgaging and the inability of people to pay the loans back. This is a kind of issue that is also faced by many big businesses as well and this is why they become bankrupt.

 

[Shigobad20201]

Getting a loan in my own opinion is out of it because its not advisable mainly because of the interest in the loan which is always huge and most of the time hard to repay .

 

[Bousine123]

Well, when starting my own business, I would like to use my own savings to open the business, I think it is more peaceful like that for me, at least I will not be thinking of interest rate and collateral.

 

[Immilash1]

For me, self-investing is the better option but not always on the table. For most people, getting a loan makes the process easier and faster. If I were to start up a businesses right now, I would either have to use my downpayment savings for a house or continue saving for several years.

Yeah, I completely agree with that, self investment is far more better than taking loans to start up a business, for me I don't prefer to take loans to start up a business because that's very very risky to me.