Loan or owner's funds?

[Damscooguns73]

Concerning loan or owner's fund. Well, I would prefer using my own funds, even if the money is small, it is better off than acquiring loan from banks because their interest rate is high and they also have deadline to meet up. It is better to source for money.

 

[btaliat]

To start a business, I will prefer me using my own money but if I want to expand my business, I may need loan to do that becssue it will be very difficult to save millions of naira to expand business.

 

[Chibson]

it really plays to start small and build your business from scratch instead of taking a loan to start a business that may not succeed. I have seen a lot of little startups that grew over time and become reputable businesses.

 

[Patrik]

owner's funds would be preferred , loans aren't really recommended in businesses with unknown fates, because if your business fails, you will end up paying loans for something you didn't gain money from

 

[Heatman]

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 have just never been a fan of getting a loan to start a new business because of the challenges that faces all new businesses. It's never easy.

 

[Sariana23]

You're right @Sariana23. I hate to work and having the mindset of paying back the loan i borrowed from third parties which never turned out to be productive to me. That's why staying loan free is the best.

I once applied for a loan and the experience was not pleasant, so I always recommend, and this is what I apply to myself, to save to cover both business and personal needs.

 

[Good-Person]

I would not take loans in order to start my own business because taking loans means that you are risking everything. What if you fail to pay your loans back? What will you do then? You would become bankrupt as a result or take even more loans to pay your loans off! So I always advise people to refrain from taking loans and start their business using their own money.

 

[Heatman]

If you have the guarantee that you will succeed in your new business when you get a loan, then you need to work extra hard in order to make sure you are make it.

 

[Setfragil]

The best way to fund a business is with your own capital but when you cannot afford the capital to fund the business, you will look elsewhere to source for funds. Whereas, we need to be mindful of where we source for business loan as some might put us in a state of perpetual restlessness.

 

[Shigobad20201]

I prefer using my own money to run a business, instead of taking a loan because I don't like taking a loan for business, I prefer to take my fund.

The best advise is to start your business with your own personal money no matter how small the business fund might be, or you can do a fundraising so that friends can help you, its not advisable to start a business with borrowed money.

 

[Kingsley]

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.

 

[eLdavis]

If i have the funds, why going for a loan? I would rather use my personal funds to start up my business in that way i wount have to work under pressure in other to pay back the borrowed funds, which could make me create more mistakes cause i am under a deadline.

 

[Kelly5]

I will prefer that you use your own funds if you have some to start up your own business as one cannot tell what may happen in the unforeseeable future. You might incure loss and then how do you pay back the loan?

 

[tyrim88]

For a start up or new business,it is advisable to start with your own funs,because the business terian has not yet been mastered by the bueiness owner,there are some things which he might encounter in the field that might put him under pressure.

 

[Kunkun]

If I have the funds myself then i would prefer to use that instead of borrowing a loan from maybe a bank, at least with my own funds there would be more peace of mind compared to loans

 

[Alexandoy]

For a start up or new business,it is advisable to start with your own funs,because the business terian has not yet been mastered by the bueiness owner,there are some things which he might encounter in the field that might put him under pressure.

That is true, the best to start a business is by using your own funds for the capital. When you take a loan for the capital that is risky especially if your home is your collateral. When the business folds up then you may also lose your home. When you use your own money then you can still recover because you have no debts to pay.

 

[Fizzy_boi]

There is nothing wrong with getting a loan actually but if you have have your money that you can use to start a business it's ok amd not bad it definitely the best idea.

 

[Bookwormlux1]

If I have a lot of liabilities, I would rather sell them and then investment the little amount of money than to resort to a loan that won't end well.

 

[Ralphjoe]

Loan and funds, both are of good and tremendous benefits, but with different advantages and disadvantages. For me loan is good but can be frustrating and be choking because of pressure. I prefer owners fund or allowing people to investing in the business

I completely agree with you that taking loans and also debentures are good benefit with different advantages and disadvantages but when it comes to me I would prefer using debentures instead of loans as a loan conditions are quite rigid and complex.

 

[Justin]

If you do not want to burrow, you may always feel fund shortages and you may never be able to make as much profit as you desire, or as much profit as your business can earn