Would you prefer getting a loan for a startup or getting an investor?

[bhadz]

But that's also light there even if you take a loan because you have a collateral. Unless that collateral is very important to you, you'll definitely have to take the pressure, pay the interest and loan so you can take back that collateral if it's very important to you. I've known entrepreneurs that did that, it's all what they have and that's why they took a gamble by either selling what they have to sell, and also take a loan against their properties and other assets. It is only ourselves that sees the vision and potential of what we're doing and no one will believe in us in the first trials.

There are some people who want to do something to change their financial situation but their biggest problem is that they do not want to take risks. Surely those investors will not be able to change their situation much. There are many investors who do not have money of their own but are ready to take risks and do not even hesitate to take loans against their assets. In my case, I think that if I have assets, I will start a business with those assets and if that is not possible then I will definitely try to take a loan. I must accept any one of them. If someone has any alternative option then he can accept it as he wishes but if not then I think taking a loan is definitely a good decision but of course one should review it well before taking a loan.

It's okay to take risk when you're also using your assets for it. Whether you put it up as a collateral or sell that for what you're trying to pursue as a business. But what's wrong IMO is when you have no clue of how the results will be and you're completely new to what you're trying. Do not take a loan out of it. I mean to say that there are investors or businessmen who are very enthusiastic with their idea and what they do is trying to do all in without contingencies and they're taking loans that could eat up with so much interest and they don't even have assets to put in it.

[viljy]

It is better to attract an investor. The investor is at least interested in the success of the enterprise, whereas the bank is only interested in paying back the loan and interest. In case of any difficulties, which always occur, an investor can be more flexible than a bank. The bank will either destroy the entire company, demanding repayment of the loan, or restructure the loan so that the founder will own almost nothing in his own company. Of course, it is more difficult to find and convince an investor to invest than to take out a loan from a bank, especially at a high interest rate.

As said it is an investor for a startup. When it comes to business, we can depend on loan. There is huge difference between business and startup. Business is something proven, we just find the right one and market it or open the business in a place where there is demand for it. This is low risk and can be more calculative. For this loan suits perfect and one can succeed.

When it comes to a startup it is much about innovation and scaling. Here an investor is the right choice, because he needs to understand the model, the function and how this going to reach the people around the world. Startup is kind of experimenting, so we don't know the right outcome. For startup I'll find a right investor, until then we need to keep working on it.

It theoretically looks like this. In an ideal situation. In practice, any business is always fraught with difficulties. The bank doesn't care about these difficulties at all. On the contrary, it often happens that a bank loan is part of a scheme to raid a business that is specifically bankrupted in order to take over production facilities. So I think that a bank loan is always a worse choice than an investor. Regardless of whether you are starting a startup (making scratching posts for cats from corrugated cardboard) or an already well-known business (for example, growing strawberries).

By the way, we have a blogger who has been interviewing various entrepreneurs about their business for several years, and several times. So for the last year, they mostly talked about how they were forced to close the business, often with debts to the bank... The reasons are different, generally due to problems in the country's economy, but one thing is in common - a bank loan is not a lifeline, it is rather a weight on the foot of a drowning man.

[Grace333]

But that's also light there even if you take a loan because you have a collateral. Unless that collateral is very important to you, you'll definitely have to take the pressure, pay the interest and loan so you can take back that collateral if it's very important to you. I've known entrepreneurs that did that, it's all what they have and that's why they took a gamble by either selling what they have to sell, and also take a loan against their properties and other assets. It is only ourselves that sees the vision and potential of what we're doing and no one will believe in us in the first trials.

There are some people who want to do something to change their financial situation but their biggest problem is that they do not want to take risks. Surely those investors will not be able to change their situation much. There are many investors who do not have money of their own but are ready to take risks and do not even hesitate to take loans against their assets. In my case, I think that if I have assets, I will start a business with those assets and if that is not possible then I will definitely try to take a loan. I must accept any one of them. If someone has any alternative option then he can accept it as he wishes but if not then I think taking a loan is definitely a good decision but of course one should review it well before taking a loan.

It's okay to take risk when you're also using your assets for it. Whether you put it up as a collateral or sell that for what you're trying to pursue as a business. But what's wrong IMO is when you have no clue of how the results will be and you're completely new to what you're trying. Do not take a loan out of it. I mean to say that there are investors or businessmen who are very enthusiastic with their idea and what they do is trying to do all in without contingencies and they're taking loans that could eat up with so much interest and they don't even have assets to put in it.

Taking loans to start up a business might be a wrong idea in some ways because the business idea is not something you've tried out before and you're likely new to the experience of running that business, however there is a high chance of failure so it's better to either start with what you have or get an investor who will share the risk with you that way you're playing safe and at thesame time utilizing your gaining experience and could even level up. One thing I've learnt in life is that there is no reward for those that don't put their hands into anything meaningful.

[Nahl]

Taking loans to start up a business might be a wrong idea in some ways because the business idea is not something you've tried out before and you're likely new to the experience of running that business, however there is a high chance of failure so it's better to either start with what you have or get an investor who will share the risk with you that way you're playing safe and at thesame time utilizing your gaining experience and could even level up. One thing I've learnt in life is that there is no reward for those that don't put their hands into anything meaningful.

Running the business cannot done in hurry and it should be done step by step with plenty of process i mean in business everything could possibly happen so, if you have small capital to start it then you can build the business according to your effort money as the basic capital and see the progress and if your business are growing well i think you can start to thinking to loan or looking for the investors because sometimes it is necessary to wided your business network and speaking about starting business by taking loan i have done this before that i was start up a business which i have no skill using the money which i was loan from the bank and the result is very bad for me due the poor management makes my business bankrupt and the worst thing is i got huge debt to the bank which i have no money to repay it so, this is valuable lesson which i got that don't ever starting business by taking loan

[bhadz]

It's okay to take risk when you're also using your assets for it. Whether you put it up as a collateral or sell that for what you're trying to pursue as a business. But what's wrong IMO is when you have no clue of how the results will be and you're completely new to what you're trying. Do not take a loan out of it. I mean to say that there are investors or businessmen who are very enthusiastic with their idea and what they do is trying to do all in without contingencies and they're taking loans that could eat up with so much interest and they don't even have assets to put in it.

Taking loans to start up a business might be a wrong idea in some ways because the business idea is not something you've tried out before and you're likely new to the experience of running that business, however there is a high chance of failure so it's better to either start with what you have or get an investor who will share the risk with you that way you're playing safe and at thesame time utilizing your gaining experience and could even level up. One thing I've learnt in life is that there is no reward for those that don't put their hands into anything meaningful.

I have seen a lot of my countrymen that does this. They're so confident of themselves and they're taking the advices of the rich wrongly about building a business to get out of poverty and to have their own. And that's why whenever their attempt to start a business fails, they're on a double whammy. Failure of the business and at the same time have to pay the loan with interest. But that's how they learn from that experience and becomes a better businessmen. They have to go through with such painful experience so that they come back stronger.

[GiftedMAN]

Taking loans to start up a business might be a wrong idea in some ways because the business idea is not something you've tried out before and you're likely new to the experience of running that business, however there is a high chance of failure so it's better to either start with what you have or get an investor who will share the risk with you that way you're playing safe and at thesame time utilizing your gaining experience and could even level up. One thing I've learnt in life is that there is no reward for those that don't put their hands into anything meaningful.

Taking a loan to establish a business already put the business at risk same way the owner will be doing anything possible to generate money to pay back the loan but for a starter it could affect you since you don't know if it's going to be successful or not but in another sense there will be extra zeal to work very hard to make sure the loan is repaid. For the sake of peace and your personal happiness it is better to involve an investor into the business so that you both can think of a good way to make the business work and you don't have to bear the risk alone.