Loan or owner's funds?

[Setho]

The really thing is that it depends on what the money is going to be used for . though a lot of people would prefer owner funds because of difficulty in obtaining loans.

 

[Setfragil]

The capital to fund a business has always been the most difficult thing to achieve in the establishment of a business. When the need to raise capital arises, I prefer to use my own capital to fund my business than taking a loan because of the pressure and tension that comes with loan.

 

[Prettyjanie]

As for me I don't think it is a wise idea to take loan and start a business,anything that have to do with business involve risk, so it is better you start up business with your own capital then if the business is progressing you can now take loan to enable the business expand.

Owners find for me. I do not subscribe to the idea of obtaining a loan. It is better to start a business with your own funds, that way you avoid obtaining a loan from any loan facility.

 

[Bookwormlux1]

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)?

It is better to sell something that I have and won't be needing than to resort to taking a loan which won't make things work out easily for me in the long run.

 

[Setfragil]

It is better to sell something that I have and won't be needing than to resort to taking a loan which won't make things work out easily for me in the long run.

It is not every loan that is bad to take to run a business though using your own capital to fund a business is the best but loan is not totally bad to take to finance a business.

 

[Bookwormlux1]

It is not every loan that is bad to take to run a business though using your own capital to fund a business is the best but loan is not totally bad to take to finance a business.

What the person was actually saying meant I shouldn't use my own funds that is available, but take a loan to use. It's not advisable as loan comes with interest rates.

 

[Ralphjoe]

To start my own business I will use my fund or selling shares, is not a good thing to take loan from bank for growing a business, it comes with some difficulties at time. But when you make use of your own fund you will relax and think of how to plan well for your business.

I think the best way for one to be able to fund his business is by selling shares from your company instead of taking loans from Bank because bank loans are very risky and they can't wait very bad interest rate so the objective is always about trying to avoid bank loans by all means.

 

[Kelly5]

While the temptation of seeing the money of people before your very eyes might want to make you think using their funds for business is an ideal thing to do, I will advise you against that. Not even the loan.

 

[kay169]

I would prefer funding it by myself so that o can keep track of all the financial records in my business this also helps the capital rates of your business and avoid debt

 

[Setho]

This your question is actually a very good question but it would depend on the type of business that is wanting to be played but owner funds is preferred for me.

 

[Deucalion]

Loan Is actually the best if you do not have any opportunity to raise money to start up the business you are interested, a lot of people are getting a loan to start up a business and they also succeeding, you only need proper planning.

 

[Bookwormlux1]

I think the best way for one to be able to fund his business is by selling shares from your company instead of taking loans from Bank because bank loans are very risky and they can't wait very bad interest rate so the objective is always about trying to avoid bank loans by all means.

Banks are never easy to deal with and I would also advise anyone to rather seek some form of corporation than to resort to taking a loan.

 

[Ralphjoe]

Banks are never easy to deal with and I would also advise anyone to rather seek some form of corporation than to resort to taking a loan.

Taking a loan from a bank is a very bad way for anyone to start up my business as banks as very steep conditions that everyone is supposed to meet before they can grant and loans and a day in their interest rate is always very high which is very difficult for most people to pay off.

 

[Josephjossy]

It is a very bad idea to start a business with a loan you can save money and start your own business with your money than to borrow a loan to start up the business what if you didn't make it to pay you back then how will you pay the money you get the money

 

[Bookwormlux1]

Taking a loan from a bank is a very bad way for anyone to start up my business as banks as very steep conditions that everyone is supposed to meet before they can grant and loans and a day in their interest rate is always very high which is very difficult for most people to pay off.

This is why they always make sure people have some collateral that they could seize whenever the borrower is unable to repay the loan. It's best to avoid anything of sort.

 

[Lens]

No sane investors will use a loan for his business when he has the capital at his disposal. Using your capital guarantee optimum profit and a peace of mind .you don't have to think of any repayments or paying interest

 

[Deucalion]

No sane investors will use a loan for his business when he has the capital at his disposal. Using your capital guarantee optimum profit and a peace of mind .you don't have to think of any repayments or paying interest

Sometimes people can get extra loan to support the little capital they are having when establishing a business, this can happened when the owner believes that the money he or she has will not be sufficient to setup the business.

 

[Josemendez]

No sane investors will use a loan for his business when he has the capital at his disposal. Using your capital guarantee optimum profit and a peace of mind .you don't have to think of any repayments or paying interest

True . One only borrows such loan when he feels that his personal fund may not fully take care of the demands of the business. Outside this , there is no point in borrowing loan

 

[Ralphjoe]

This is why they always make sure people have some collateral that they could seize whenever the borrower is unable to repay the loan. It's best to avoid anything of sort.

There are situations whereby you do not have the funds for a business and the only option that you have is to take a loan from a bank if you have an asset, so I will say that we can take a loan for a bank to start a business when we are very sure that the business plan would make the business to succeed.

 

[eLdavis]

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.

Taking a loan from bank is one thing i hate so much, and can be risky in some cases if not in all cases, many people just rush in to take loan without looking at the disadvantages they only reason the fact that it would take less time to get a loan than to save.