Loan or owner's funds?

[Kvngsammy]

I'll prefer to raise funds by selling shares of my company to interested individuals - that way I wouldn't be obligated or be under so much pressure to make or repay monies back. I plan to do that so that I can buy back the shares in future

 

[Toyoabasi]

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)?

Owner's fund!
When attaining a capital, I cannot resort to loans...the frustration of not being able to get the repay settled is worse than that of not having funds to start up the business.
It's better I use my funds to start up.

 

[Kubiat-Abasi]

I prefer owner's fund. As much as possible, I will try to save up money before starting a business so that even if I'm to loan money, it won't be up to 50%. I will use my money on a scale of 70% so I don't run at a huge loss or risk.

 

[joy101]

I really like starting a business with loan I like to use my own fund instead of using loan to start up my business, because I hate idea of taking loan to start up a business.

 

[Adebayonle7]

I can sell shares to make money for the business, this is preferable to me compared to taking bank loans, the danger in taking the loan is that you may end up using your profits to service the debt instead of re-investing such profits, another method is saving from your monthly salaries to enable you start.

 

[kayode10]

I am going to start by asking my friends and family to support my business idea with any amount they can spare for a while. if I am not being able to raise enough funds from friends and family I will go to the financial institutions like bank.

 

[Godspower]

Taking a loan from a bank to fund your business isn't a great idea. Most loans come with very high interest rates and it might be difficult to pay back if the business does not progress as planned.

 

[Good-Person]

I would rather prefer selling my property over getting loans. However, I would borrow loans that do not require me to pay interest. I would only borrow such kind of loan if I really do not want to sell off my property and I if I no cash capital at hand.

 

[Ghost1]

Owners fund. If you have something to sell its way better than taking a loan from the bank and paying with interest. Loan is never an acceptable source of capital

 

[Sotherefore]

A person that is starting up a business should try to fund the business on their own capital because that is just the best way, without this It may really be difficult to succeed, although some people have been getting a loan to start up a business and are successful but there is no need to take unnecessary risks.

 

[kinqzbitz]

Well for me it is not advisable to actually collect it use loans to start a new business because you are not yet sure of how the business will do and how you will pay back and so I prefer the owner funds

 

[Godspower]

Owner's fund!
When attaining a capital, I cannot resort to loans...the frustration of not being able to get the repay settled is worse than that of not having funds to start up the business.
It's better I use my funds to start up.

Owner's funds is the best source of business financing. Repayment of loans might be difficult because of the high interest rates that most financial institutions charge.
[automerge]1638397282[/automerge]

Owner's fund!
When attaining a capital, I cannot resort to loans...the frustration of not being able to get the repay settled is worse than that of not having funds to start up the business.
It's better I use my funds to start up.

Owner's funds is the best source of business financing. Repayment of loans might be difficult because of the high interest rates that most financial institutions charge.

 

[Toyoabasi]

I prefer owner's fund. As much as possible, I will try to save up money before starting a business so that even if I'm to loan money, it won't be up to 50%. I will use my money on a scale of 70% so I don't run at a huge loss or risk.

Yes, I prefer using my funds to start up my business. Obtaining loans has a way of rendering you as the business owner unstable, because all you will be thinking about is how to make sales and repay the loan.

 

[greenie]

I preferred and used my own finances. I don't like to have debts, I don't like to take money from the bank and think every day that I have to pay the debts. if I have my own money, yes, I open a business.

 

[eLdavis]

Well for me it is not advisable to actually collect it use loans to start a new business because you are not yet sure of how the business will do and how you will pay back and so I prefer the owner funds

What about if you find yourself in a position where you do not have the required funds to start the business, would you opt for a loan in the end or wait and save up?

 

[Godspower]

I preferred and used my own finances. I don't like to have debts, I don't like to take money from the bank and think every day that I have to pay the debts. if I have my own money, yes, I open a business.

I like your perspective. It's better not to obtain loans because their interest rates are quite high and you may not be able to meet up if the business does not succeed as envisaged.

 

[ganibade]

Loan or owners fund. You can get loan from Bank to finance your business. You can find your business by yourself,it depends on how much you are having to finance your business or to fund it. The best loan is the one that has no interest which we have rest of mind to return to the bank or to pay back.

 

[joy101]

I will like to startup my business with my personal funds because I don't like taking loan to start up business, I prefer to work hard so to save money before going into business.

 

[kayode10]

Business capital is one of the difficulties faced by most entrepreneur who are just starting out building a successful business. it'll be very good if you can find a place where you can obtain a loan without collateral or much interest.

 

[Ghost1]

I 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

Everyone will always prefer to use his own fund to start a business. The question here should be in case of no capital, would you go to get Loans for your business?