Loan or owner's funds?

[Ononivami1]

For an already established business, loans could be very helpful for business expansion. However, taking loan need to be analysed carefully inorder not to fall victim of circumstances. You could lose everything if you can't meet up with repayment.

 

[Kaffyfolla]

Owner's funds mean funds which are procured by the owners of a business, which may be a sole entrepreneur or partners or shareholders of a business. ... The sources for raising borrowed funds include loans from commercial banks, loans from financial institutions, issue of debentures, public deposits and trade credit.

 

[kayode10]

Loan is a two-edged sword, I will prefer to raise capital for my business bye seeking fund from the investors. The only thing that will be on online is how I'm going to take back the investors together with the profit sharing.

 

[Pousinha]

In the case of a small or medium sized business, I'd prefer to sell my company shares than taking a loan. Taking loans involve risky factors, especially considering the interests on loans to be paid to the bank. So in addition to the risks, loans use to be expensive. In my opinion, loans fit better a large sized business, well established in the economy. It's easier for such a company to quickly repay a loan and to be less prone to failure and bankruptcy.

 

[mayumi97]

I prefer using my own funds to start a business because it is the most practical approach considering that I am an ordinary person with no business ownership background to back me up. The options mentioned may be worth pondering when the business has proven that it is viable and that the infusion of more capital will help it expand and grow. Both options have their pros and cons but the idea of increasing my stocks' value and benefiting from it directly through an IPO or stock selling makes it more attractive.

 

[Shigobad20201]

You are right , owners fund is the money procured by the owner of the organisation to fund the business, while funding business or starting a business with a loan is not advisable because it will hav a long term negative impact on the business.

Owner's funds mean funds which are procured by the owners of a business, which may be a sole entrepreneur or partners or shareholders of a business. ... The sources for raising borrowed funds include loans from commercial banks, loans from financial institutions, issue of debentures, public deposits and trade credit.

 

[Laurentta]

If i were to start a business, i would prefer my own funds to taking a loan. I'm sure almost everyone if not everyone would also prefer that but it doesn't always happen like that and people are forced to take loans to start their business.

 

[Heatman]

I would prefer using my own funds, even if it means me selling my shares to raise the money, but for taking a loan from the bank, I don't really like that because I don't like the fact that have to drop a collateral and there is that thought going through my mind that I am owing the bank so it's best I just sell my own shares and use your own money.

I am never the kind of person that is comfortable with getting any kind of financial loan to start up any kind of business because I believe that it doesn't work well in most cases for people.

 

[jay]

Well for me both will do just fine, if you are able to fund your business then good,but if you don't have enough capital then why not take up a loan, but before taking a loan you must be quite sure that the business you got in mind is going to work

It is actually more better that you found your business by yourself without having to rely on financial loan to start of the business because if you're not able to pay back the loan you are definitely going to lose whatever collateral that you use to get the loan.

 

[Shigobad20201]

Starting you own business with your own personal fund is the best way to have a good relaxed that won't hinder your progress in the near future because of loan repayment.

 

[Sotherefore]

Obviously the owner of the business should try to raise money that is needed to start up a business , starting up a business with a loan is not really advisable especially in this modern society .

 

[Shigobad20201]

The best way to be safe in business and not think about any loan repayment in the future is if the start up capital is being raised by the owner of the company himself

 

[Setho]

I absolutely do not buy the idea of starting a business with a loan unless it is the last resort after you have looked for other means of securing funding. If the owner has enough money that is okay for them to start the business then that is what he should do.

 

[Sincerem]

Normally loans were not made for direct establishment of business but could be used to grow an already established business. Whatever the case maybe we should try preventing ourselves from using loan to start a business.

 

[Smiles20]

If the owner of the business trust his ideas very well then I am sure that he will have no difficulty trying to use his own personal funds in order to study business.

 

[Robust]

Between an owner funds or loan, I prefer to run my business with my own personal funds than collecting a loan to run my business and still find it hard to pay back the loan collected.

 

[tyrim88]

Am not a big fan of loan and borrowings because I believe it won't make a business to stand strong, at intervals the business will continue to pay back a portion of it profit as interest which will over the period become very frustrating for the investors. In my opinion owners fund is better.

That is the more reason why i personally would not go for any loan or advice persons in business to go for it,especially new start ups,because the presure alone can frustrate any business resilient person.

 

[Chibson]

it is better to venture into a business with your own funds because taking a loan can be very bad especially if you're a newbie in business. I prefer to save my own money and venture into my desired business.

 

[tyrim88]

Am not a big fan of loan and borrowings because I believe it won't make a business to stand strong, at intervals the business will continue to pay back a portion of it profit as interest which will over the period become very frustrating for the investors. In my opinion owners fund is better.

That is the more reason why i personally would not go for any loan or advice persons in business to go for it,especially new start ups,because the pressure alone can frustrate any business resilient person.

 

[Shigobad20201]

it is better to venture into a business with your own funds because taking a loan can be very bad especially if you're a newbie in business. I prefer to save my own money and venture into my desired business.

i believe nobody wanted or intended to start a business with a loan but there are some situations where the fund needed for the business will be much more than what you can afford as the owner of the business .