Loan or owner's funds?

[Adventurer]

For starting and growing a business , we need funding to attain the particular capital for the business.
That capital can be attained either by taking loan from the bank ( also called debentures ) Or by using the owner's funds ( also called selling shares of the company)

In easier way , You can earn funding either by selling your own company shares or taking loan from the bank.

What will you prefer while attaining the capital (LOAN OR OWNER'S FUNDS)?

I would prefer owner's funding, bank loans can be appealing but the pressure to pay back can be much especially when the business is not doing as it's supposed to. At least with owner's funding you can purchase your shares back.

 

[Modupe]

For starting and growing a business , we need funding to attain the particular capital for the business.
That capital can be attained either by taking loan from the bank ( also called debentures ) Or by using the owner's funds ( also called selling shares of the company)

In easier way , You can earn funding either by selling your own company shares or taking loan from the bank.

What will you prefer while attaining the capital (LOAN OR OWNER'S FUNDS)?

Starting a business with loans is very risky according to my own opinion. A business loans can impose pressure on the business due to the collateral involved and pressure of repayments. It is better to start with the available funds

 

[tuna89]

i have always stayed away from loans when it comes to starting a business, i would prefer to save some money from my monthly salaries and start up, no matter how small, this will enable me concentrate and understand all the risks involved in business and also prevent panic with respect to repaying any borrowed loan.

 

[Dubai]

Using owners find for starting a business is quite better and has more potential for hitting success more than that of using loan for business. Using a loan puts you on your toes, and should in case the business fails, you would have lost in two folds. I would not advise using loan to start a venture.

 

[Josemendez]

The choice whether to use loan or borrow fund depends on the money available to the business owner. If he has enough money to finance the business , then I don't see any reason to borrow money that will be accumulating profit .

 

[Dowenship]

Based on books I have read on finance and management,I will prefer taking a loan to start up the business.with that,you will manage your funds well and try as much as possible not to spend from your capital.i will say it instill discipline in you

Although books readers are leaders, you claimed you have read some books on finances and management and you came into conclusion of taking loan which is not advisable i don't think that's a good idea for staying a business if actually you red the right book

 

[Alexandoy]

My usual stand on the issue of capitalization is to have on hand ample money for the initial capital of the business. Obtaining a loan for a start up, even just for augmenting the current funds, is not a good idea because you are putting pressure on your shoulders with the installment of the loan that you need to pay regularly.

 

[Sincerem]

I never preferred nor advise anyone venturing into business for the first time to acquire loan as its sole capital means before starting up his or her business. That makes such business to grow higher in its first establishment, cos the owner will be in a haste to cover up the debt and run into trouble.

 

[Nicklas22]

Having your own money to start a business is quite good and it's the very best, because you don't have the be paying anyone, you gain any profit it's yours but when you take a loan to start a business it's very risky because you might not be successful instantly in your business so it might be difficult for you to pay back the loan

 

[Peppul]

In starting a business it best not to take up loans to startup a business no matter what. Loans are risky to take up and use to start a business, and there is the issue of high interest rate and if there is a delay payment to face paying more. So for anyone wanting to start a business the best is to use one's capital to do so, it's risk free and no interest rate or a deadline to payback.

 

[Ayokex]

I prefer selling the company's share to raise some capital. Getting a loan especially from the commercial bank is very detrimental to the company's survival. The terms and conditions including the interest rate of the bank loan are not always favourable to the company's development. When you sell some some company's share to the investors you have shared the company's burdens on the investors and in that case whatever that happens to the company's becomes the general responsibility.

 

[Sincerem]

Having your own money to start a business is quite good and it's the very best, because you don't have the be paying anyone, you gain any profit it's yours but when you take a loan to start a business it's very risky because you might not be successful instantly in your business so it might be difficult for you to pay back the loan

That's where i stand bro, i don't see any reason why i should go and borrow to start up my first business on earth. That will put my thoughts in jeopardy, I'll be having double mindset to make profits and repay loans, never.

 

[Blessing76]

As for me it is more preferable to use owners funds rathe than taking loans because taking loan will require payment with interest on it so it is kind of uncomfortable
But another situation may be if the owner funds is not enough so he may actually have to collect loan

 

[Lawal]

Loans is like an alternative to a business owners' fund, it is means of starting a business if there is no enough capital. It is only advisable to start a business with a loan if you're sure of the business success. If not , start with the available capital
[automerge]1616062206[/automerge]
Loans is like an alternative to a business owners' fund, it is means of starting a business if there is no enough capital. It is only advisable to start a business with a loan if you're sure of the business success. If not , start with the available capital

 

[Sincerem]

Loans is like an alternative to a business owners' fund, it is means of starting a business if there is no enough capital. It is only advisable to start a business with a loan if you're sure of the business success. If not , start with the available capital
[automerge]1616062206[/automerge]
Loans is like an alternative to a business owners' fund, it is means of starting a business if there is no enough capital. It is only advisable to start a business with a loan if you're sure of the business success. If not , start with the available capital

You stated your points clear. Even when I'm sure for the business i can't take loans from externals with high repayment interest to start up a business i know well about. Unless its from the government then I'll understand that the repayment interest will be okay.

 

[Shigobad20201]

For starting and growing a business , we need funding to attain the particular capital for the business.
That capital can be attained either by taking loan from the bank ( also called debentures ) Or by using the owner's funds ( also called selling shares of the company)

In easier way , You can earn funding either by selling your own company shares or taking loan from the bank.

What will you prefer while attaining the capital (LOAN OR OWNER'S FUNDS)?

I prefer starting my own business with my own personal money rather than borrowing money or taking loans from banks or loan sharks, you can only borrow money when the business is already on its feet, and you need loan to support it.

 

[Blessedsam60]

Both loans and owner's fund to start or grow a business isn't bad at all. All what we need are capital, labour and others to grow a business. We can now say that the success of a business is dependent on the human capital invested.

 

[Sincerem]

I prefer starting my own business with my own personal money rather than borrowing money or taking loans from banks or loan sharks, you can only borrow money when the business is already on its feet, and you need loan to support it.

Wise choice you just made, it will be good you stick to your decision and work harder towards your future or present business success. One doesn't need to borrow money else where during his or her business start up.

 

[Bilal0087]

Based on books I have read on finance and management,I will prefer taking a loan to start up the business.with that,you will manage your funds well and try as much as possible not to spend from your capital.i will say it instill discipline in you

I don't consider it a right decision to take loan for starting a business because in this way a person cannot pay full attention for the progress and development of business.
He will always be in stress of returning his loan money.

 

[Sheyemanu]

Personally, I as a person do prefer to setup my business with my personal savings than using loan to setup my business. Why I said this is because most times when people get loan to set up a business at the end it's the interest rate that will definitely kill the business and make me lose more money than anticipated