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

[milewilda]

Nothing beats having your own capital where you alone have total control over the business. But, things don't always go as we desire it. Before going for any option of financing a business, it is very necessary that the entrepreneur reviews the terms and conditions of both options thoroughly before choosing. It is also necessary that whoever has an idea should have at least 50% of the needed capital while others comes from external sources.

For someone who loves to have total control over his/her business, getting an investor might become a problem in the future as personal interests, grudges and bias might set in. I think I fall into this category. It is better I start small with my small capital and a reasonable loan facility I can easily settle with ease than work hard to make profits that will be shared between I and a dormant partner. Those who can do better in partnerships can source for good investors and save themselves the stress of repaying loans and interests.

I would really be preferring myself to be a sole proprietor rather than on having tons of people who is also an owner of the said company or project but if you are really that in lacking up with some funds
then you wont really be having no choice but to bare up with those things that you dont like. The good thing on being a sole proprietor is that you could really be able to make yourself do the things that you do want
since  you do have that full control or rights then you arent that depending on someone or doesnt really on anything but rather yourself. There are really just that those instances that you are really that eager on trying out to materialize your idea but you dont have any options since you do lack money, you cant take up a loan nor be able to borrow to those people you do know.

Also, finding up investors online is never been easy even if you've been deciding to get one or a couple of investors but still it wont really be that a guarantee that you do get one due to some trust issues.
This is why at the moment that you have lost all of those possible options then you would really be just sitting down and just missed up those opportunities since you dont have any options.
There are really things which arent meant for us.

[Porfirii]

Nothing beats having your own capital where you alone have total control over the business. But, things don't always go as we desire it. Before going for any option of financing a business, it is very necessary that the entrepreneur reviews the terms and conditions of both options thoroughly before choosing. It is also necessary that whoever has an idea should have at least 50% of the needed capital while others comes from external sources.

For someone who loves to have total control over his/her business, getting an investor might become a problem in the future as personal interests, grudges and bias might set in. I think I fall into this category. It is better I start small with my small capital and a reasonable loan facility I can easily settle with ease than work hard to make profits that will be shared between I and a dormant partner. Those who can do better in partnerships can source for good investors and save themselves the stress of repaying loans and interests.

I would really be preferring myself to be a sole proprietor rather than on having tons of people who is also an owner of the said company or project but if you are really that in lacking up with some funds
then you wont really be having no choice but to bare up with those things that you dont like. The good thing on being a sole proprietor is that you could really be able to make yourself do the things that you do want
since  you do have that full control or rights then you arent that depending on someone or doesnt really on anything but rather yourself. There are really just that those instances that you are really that eager on trying out to materialize your idea but you dont have any options since you do lack money, you cant take up a loan nor be able to borrow to those people you do know.

-snip-

It has been said before that everything depends on the circumstances. If you have the knowledge, motivation, money and time to build your own business, it is great! but we usually lack some of these resources, and that's when a partnership with others is advisable.

We focus on the case of the entrepreneur who lacks the money to build his/her business, but it can be also positive to have a partner who knows a lot about management in general, or a niche market in particular, or who knows influencial people, when the entrepreneur doesn't. Or viceversa, someone who has the money, contacts, know-how etc. but doesn't have time to run the business and needs a partner to work in the idea.

Without knowing about the skills, personality etc. of the partners, and the needs they have, we can't conclude whether it is better to build your business on your own, or accompanied.

[retreat]

It has become commonplace for startups to try to get investors early in their development. Because by getting funding from investors, it allows startups to be able to develop their platforms in a more focused manner because usually investors will not only provide funding but also the network and support that startups need to be able to develop in the future. However, there are also startups that are trying to get a loan, but it will be riskier for them because they need to be responsible for their loan and are ready if their business becomes collateral for the loan.

[Juse14]

,......

That is definitely the problem with amateur trying to find investors who truly want their project succeed and willing to spend some money into cultivating the project into some extent, when we are talking about money we talking about trust, we all know newbie with no experience of building startup and successfully carrying it into multi millions value always getting ignored, moreover if we trying to find some big investors that willing to spend big money with a lot of uncertainty to cultivate our startup it becomes even more difficult, lets be frank here reputation and alma mater matters a lot in giving that good first impression into people, even more obvious when we trying to find a deal about investment to our startups, they will first judge based on our academic background, if we graduated from ivy league, it instantly gives good impression at the first meeting.
after that they will judge based on our achievement, if we have zero experience quite literally with the startup building, they probably gonna refuse to spend some money investing in our startup.

its always good to start out business from scratch even with loan first, don't set the bar too high, a thriving business that make profit is already good enough, it can work as a portfolio in our end and can elevate the value and self worth in the eyes of other.
what people seem to forget though, investors does manage their risk, they will avoid funding startup if they see no potential, they will judge the product as well based on their experience and sees whether it is fitting to be funded.
but what matter most is whether the business making profit, it reminds me of people that invest in meme coin heavily, they don't care about the idea, they just care to grow their capital and thats it.

It is true what you said, that many of them are beginners with good business ideas but are often ignored due to lack of experience and a strong background. Reputation and educational history can be a reference for providing an investor's assessment to beginners.

And if we still have a low reputation in the business world, and are not graduates of a well-known university, then it will really be quite difficult for us to get an investor. So in the end, in order to realize what has been planned, taking a loan is the last option.

However, even so, it is not a problem, starting a business with borrowed money. Because in the business world, it is better for us to have debt than to lose opportunities. And an entrepreneur must be able to take risks and dare to try every opportunity that comes. Because success will be born from big and bold steps.

[leonair]

Running a business definitely requires a lot of capital which one cannot meet with just his own pocket money.  So everyone has to go towards more or less loans. Business loans are an important thing.  However, many types of calculations must be completed while taking this loan. one borrows more than necessary and wastes that money, then he will be in great danger and will not be able to profit from the business. His business will fail

[tygeade]

It has become commonplace for startups to try to get investors early in their development. Because by getting funding from investors, it allows startups to be able to develop their platforms in a more focused manner because usually investors will not only provide funding but also the network and support that startups need to be able to develop in the future. However, there are also startups that are trying to get a loan, but it will be riskier for them because they need to be responsible for their loan and are ready if their business becomes collateral for the loan.

As someone who has worked at startups before (not owned them, just employee) I can tell you that it is nearly IMPOSSIBLE to get investors to be involved with the company.

Even if you can find someone who would be able to invest, which is quite rare and usually 99% of the startups are just ideas and not even a project yet, if anyone could ever find an investor, the investor usually do not want to work for the company, they want to just fund it and then get rich from it, if they are going to work, then they would have started their own new business on the side. Networking and other stuff are not that easy thing to do, having that network doesn't mean that you want to use it all the time, money can be earned, but respect takes time.

[Antotena]

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

 If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

My conclusions will depend on the terms and conditions that comes with the opportunity given. There are some countries that are really considerable with the interest rate that are granted for loans. In develop countries where government doesn't joke with MSMes, they make sure that the interest are small and they are given for long term so the business can expand and have enough money to pay back but in some countries where interest rate are high, I wouldn't go for loan, you will die making nothing even though the business succeed as you will spend the rest of your life paying back loan you took from the beginning.

If loan is not favorable, my best shot is Venture capitals, give them some equity percentage on the business, if my idea on the business is good, their input will help not just only me but the business and it will help it grow and also make some connections for expansion. Venture capitals are rally helpful if they are available and the share is favorable, not the one they will want to take 50% of the business because some of them are wicked.

[justdimin]

Considering these two options that's one of the easiest to get, taking a loan sometimes comes with a whole lot of strict terms and conditions and  with the high interest rate expecially in my region, it's even deficult to put that as an option. Looking at the case with most investors who are just looking for ways to double there already dormant funds, and care little about the owner of the business, it seems to be another problem dealing with them as most of the ratio they intend getting from you seems to be too big expecially when they already know that your proposed business have an higher chance of doing well in the long run.

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

Loans require sudden repayment structure, that's the biggest trouble. If there was an option of "take the loan now, start paying a year later" then I would say that it would be better to keep 100% of your company.

Plus, if we could just take the loan on the companies name, meaning that if we fail to pay then the company bankrupts, then that would be fine too because it would mean that the business did not work, but when we are talking about a new one, you won't get a loan under the business name, you take it personally which means even if the business fails, you still have to pay it. That's why I believe that we are going to end up with loan not being the best option, but to be fair you can't find an investor that easily neither.

[Lanatsa]

Considering these two options that's one of the easiest to get, taking a loan sometimes comes with a whole lot of strict terms and conditions and  with the high interest rate expecially in my region, it's even deficult to put that as an option. Looking at the case with most investors who are just looking for ways to double there already dormant funds, and care little about the owner of the business, it seems to be another problem dealing with them as most of the ratio they intend getting from you seems to be too big expecially when they already know that your proposed business have an higher chance of doing well in the long run.

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

Loans require sudden repayment structure, that's the biggest trouble. If there was an option of "take the loan now, start paying a year later" then I would say that it would be better to keep 100% of your company.

Plus, if we could just take the loan on the companies name, meaning that if we fail to pay then the company bankrupts, then that would be fine too because it would mean that the business did not work, but when we are talking about a new one, you won't get a loan under the business name, you take it personally which means even if the business fails, you still have to pay it. That's why I believe that we are going to end up with loan not being the best option, but to be fair you can't find an investor that easily neither.

Banks would really be that giving out those terms on which they would really be at advantage which of course you would really be needing to pay up into those specific due dates. At first it would really be totally be explained on whats the payment structure. If you do find this to be a trouble then it would really be a take it or leave it kind of condition but honestly there's nothing that you could really be able to avoid
because no matter what the terms would be then you would really be needing to repay those loans in such time. This is why if you would really be deciding on taking up a loan on building up a business start up
then be sure that your company or business would really be that profitable or something that sustaining but since it would really be on its start up then it would really be hard to tell whether it would really be successful or not.

One of the biggest challenge is that on how you would really be that making that business to be successful. This is why every decisions would be made will really be that
acting to be a gamble or huge risks but of course if ever we do tend to have that kind of climbing up to success then we would be needing to try.

[AYOBA]

Running a business definitely requires a lot of capital which one cannot meet with just his own pocket money.  So everyone has to go towards more or less loans. Business loans are an important thing.  However, many types of calculations must be completed while taking this loan. one borrows more than necessary and wastes that money, then he will be in great danger and will not be able to profit from the business. His business will fail

Honestly anyone that wanted to running a business and doesn't plan a big capital which means the person has never ready for business, because in this situations we're living in now every business deserves a big capital before starting. But will just go and start a business with a little amount of money without making a concrete arrangement and which is why many of people's lose to some of the business they try to put their self in too.

Morever, the main reason why some people's doesn't have a standard even though they start a business, some people's will go and apply for a loan amd if they ask them for which purposes they definitely said that for starting a business and and once the loans they applied as been granted they divide money into two they will take one part to to business and the other part to defferences things, and which is why most people's refuse to move forward in their business.

[bitgolden]

These days I am looking for basically something like this as well, and that makes sense. A lot of people do not have PC to do many of what AI can do, it requires some ram, and some gpu as well, and I am talking about video level stuff, not just images. I do not have time to learn a new skill, I do not have time to even do my own job these days, there are big medical emergencies in my life that requires me to go to hospital (not for myself, for a loved one) at any moment, today I got a call for example and had to go there, it was a terrible day, but I am back home now.

However, if I can buy a "great" PC, then people can send me their files, and my pc will work for me even when I am not at home. I am looking into this, because it would be a small income but still an income, a few hundred dollars per month but still money. I do not have any money at all, but an investor or a loan is what I will do, I just didn't have time to consider this yet. It is so funny that what I used to think, may now be actual question for me to, within just few days.

[kentrolla]

It completely depends on the kind of startup and goals but I would rather prefer an investor instead of loans and paying the bank atrocious interest rate because that's one of the reason some promising startups have either gone bankrupt or taken over by bigger firms at fort cheap price. I think finding an investor would be better as we will have more flexibility though the profit margin would be reduced but this is better than taking loans.

[Kelward]

From my experience in business, I know that taking a loan to start up a new business is never a good option, and no bank or business minded individuals can give you money to start a business from scratch. It is either family and friends or people/NGOs that don't care about getting their money back, that can give money for a new startup. A new business should start first and know the demand for their products, only take a loan to increase stock on the areas that will sale fast,  so you can repay from your profit.

I support starting small and gradually begin to grow the business, although lack of funds can cripple a business before it picks up. So getting an investor is a good option in a startup business, so that the owner and investor will share in the profit and lose of the business, it's better to share profit with an investor, who will also bear loses with you, if it happens.

[Crypto Library]

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

If investors are easily available around you or the business is easy to attract investors then I would say finding investors is better than taking a loan.
But getting investors to start a new startup is very difficult, so don't start your business late to find investors. In that case I would say that if you cannot find investors or live in an area where it is difficult to find investors then I would say taking a loan would be better. Because many times in business it becomes difficult to get success if not starting at the right time. I have seen lots of giant Business company in my region that they start with small and when they got knew the market with full confidence they take loans to increase their business and they succeed.
So now it depends on your business and also your region area's what should be best for your starting.

[johnsaributua]

Indeed, the arrival of a new investor is 100% his decision to come and fund (even though there was a brief preview of a business before), even so as the owner of the company does not necessarily want to stand idly by the assets invested because for me the burden of responsibility and trust I also feel,

However, even though the loan only involves yourself, both the risk, use and rights of its obligations have more regular time / maturity that is determined ready or not ready.

The two sources of money are indeed contradictory, and I think using it in times of urgency for project growth needs is fine, as long as with good policies and calculations (making the back up bigger) than using it fully for the hype of a time.

Any project, even though it has been a long time, there must be a market shock, even careless use of money can slip into loss, especially new projects that are still in the growing stage. It is better to use your own assets as much as possible to research the market and strategy because the first 1 year is the adaptation period.

[AlphaBoy]

well your question has two side at me.

I think that if you sure enough of your business success then you should take a loan (you must be at least 70% sure)

personally I never like debt or loan and it caused me psychological sensitivity, some time I go 2 days without a cigarette just because I refuse to but it on my tap.

but again, a loan is a loan once you paid it you are set I mean imagine the guy who created Burger King had a loan instead of investor?
he would die having double the money he had.
it's like buying a mystery box that either have a 1 kilo of gold or lead and you have 2 chance with it
1-you buy it and lose everything or win everything
2-you buy it with 50% discount but both of your loses and wining will be taken by 50%

the only thing that make investors better option is the fact that he might help with the business (this can be good or bad depending what is the business and how smart he is)

the best choice is a third one, you save money and buy it all alone.
but since not everyone can afford it then I think investors is better.

[angrybirdy]

Running a business definitely requires a lot of capital which one cannot meet with just his own pocket money.  So everyone has to go towards more or less loans. Business loans are an important thing.  However, many types of calculations must be completed while taking this loan. one borrows more than necessary and wastes that money, then he will be in great danger and will not be able to profit from the business. His business will fail

exactly! unless you are born rich with generational wealth and capable to build a business even at your youngest age, but if you are just an ordinary person who earns minimum wage amount, i'll find it difficult for you to save money for your planned business, that's why having an investors is essential and if you haven't find any investors that are willing to invest in your project then loan is advisable as long as you are capable to pay the amount you owed.

[eightdots]

Finding an investor isn't always an "option" for many people. I mean I had so many business ideas before, just going around asking people to give you their hard earned money, for % of just your idea makes no sense. You ask them to pay you for your idea and that is just idea nothing more.

This is why most people can't find a way to get investors, since they have no working product to show. In that situation, most of them do not even look for a loan neither, they could ask for a loan from a bank, but they do not trust themselves, I didn't, that is why they get nothing. But if I know that something will make me some money, then I guarantee you that I would just straight up look for something like a loan, if possible for a long term, it would be a lot better.

As you said, it is difficult to find investors. You need to be in the right place at the right time or people you know should be a reference for you to find investors. There can be many things like that, but in the end it is not easy to find investors.

An idea is always valuable, but finding the person who will invest in this idea is even more valuable. If we cannot find resources for our idea, we have to find investors. If we can't find investors, unfortunately the value of our idea decreases day by day.

[adiksau0414]

In the end, it comes down to personal circumstances and the particulars of the company project. A few things to think about include the required capital, the business's possible risks and rewards, the experience and track record of the entrepreneur, and the conditions of the loan or investment. It is crucial to thoroughly consider the advantages and disadvantages of each choice and base your choice on what will work best for your company's long-term growth.

[SOKO-DEKE]

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

 If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

As for me, if I have any good idea for a business and I am 80% sure that I will be successful, I will prefer to go for a loan. However, if the conditions of the loan do not suit my business because of the interest, I will try to get interested partners who can support me financially. Partnership in business is very good because you will always get support from others and additional opportunities for boosting the business.

If In business, nobody is 100% guaranteed to be successful loan is too risk to startup business.but With partnership, the risk on me will be reduced in case anything goes wrong later in the business. I have seen some people be successful with their business, but due to natural disasters, sometimes things go wrong business start to collapse. Additionally, if your business involves a partnership, even if you are no longer alive, the business can continue and your family will surely be benefit from it.