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

[topbitcoin]

Speaking of circumstances, I don't have any luxury items, lots of land or buildings that can be used as collateral to take out a loan from the bank. and if I have to take out a loan from a savings and loan cooperative, apart from being small the interest given is also quite high, and if I start a business using a loan from a cooperative it seems like it will only be burdensome and difficult. .

So another alternative so that I can still realize what I plan, working with investors seems better than deciding to take out a loan. Although it is true that finding investors who want to work with us is not easy and requires quite a long process. However, by getting funds from investors, we don't need to worry about paying back high-interest loans. Investors are usually rewarded with a share of the business's profits, rather than a fixed monthly payment. Getting investors means we have partners in business. which of course can open up many new opportunities and support the growth of our business more than just the funds provided.

[Iroh]

It would surely seem better on getting someone to invest in your startup than looking to the bank for a loan to startup. Loans require a collateral in equivalent to the sum being borrowed and asides all that, you startup has to look and feel promising to the bank in order for your loan to be approved. No bank would invest money in a business that they feel is bound to fail.

Same goes with an investor. I personally think while it’s better to source for an investor, it would be quite easier to acquire a loan from the bank for your startup. Like banks, investors aren’t necessarily going to put their monies into just any project especially a startup that is just coming off.
I would think they’re more likely to put their monies into something that has already started and is looking promising.

[avikz]

I will prefer an investor and a mentor to join my startup rather than borrowing money from Banking institutions. Borrowed money needs to be repaid and banks will not support you in your business. An investor will not ask for loan repay, rather he will make money when you make money and suffer losses when you suffer losses.

But the twist here is that getting loan is easier than getting an investor. But with the growing startup ecosystem around the world, it's not too difficult either.

[Alpha Marine]

For me getting an investor is the best of the two. One simple reason is that if a business fails you still have to pay the the loan taken, but with an investor, you both share the loss. Losing a business and having so much debt to pay afterwards is a very difficult place to come out of.
Also, the amount of money you'll get from the investor(s) you'll most likely not get from a loan. Financial institutions won't want to fund the whole of your business, it's too much of a risk. They'll either give you part of the money or none at all.

Besides, I always wonder why people are opposed to getting investors for their businesses. If you really want that business to be as big as you want, you're going to sell shares eventually because you'll need those capitals from somewhere, so why be scared of a third party?

[GideonGono]

Investor would be the safer choice, business is so risky we don't even know if it would be successful or not, so it is better to be safe in finding investor at least the amount of money that you would risk would be lessen, unlike if you would take a loan for it.
If it succeed then the profit isn't much as like when you are the only one in the business, but you could always start a new one from your profit right away, unlike if you took a loan and it succeed you need to pay up first before starting up a new one not to mention the interest that would accumulate while paying it.

[Wexnident]

~

Probably getting an investor? They're a lot more flexible compared to a loan in a financial situation and you can adjust as well as long as both parties agree, which means you can probably get better advantages compared to taking a loan from institutions. Plus, an investor is a connection as well so going from there towards their connections then towards the connections of those connections, you'd basically be starting a way for you to grow your own network.

Not that investors don't have their own downsides though. They can be a petty ass afaik.

[tsaroz]

If I have a good idea and a will to do it and I believe I'll succeed in it, I'd go for a loan. The problem with getting an investor is I won't have full control over how I operate the startup. The investor might tell us they won't interfere and we are continue with the work but sooner or later, the investor would want ROI.
If I really believe in the idea and is scalable, I'll be committing on scaling it to as large as possible to tap the market. A good idea with limited market would soon get too many competition. Not scaling would lose your headstart and competitiveness. That makes loan a much better option but the problem with loan is its hard to get, specially when you are a startup and don't have a large collateral.

[X-ray]

if you are newbie at building startup probably you should seek investor, why? because by having investor you also have better connections, better networking that could help you boost the growth of your startups, lets be frank here.
newbie at building startup usually just don't have something of significance to start with unless you're born with gold spoon then its gonna be difficult road ahead.
these investors could give you heads up, probably some of them even could be your mentor, because they are in the same boat as you wanted to see your thrive because they also betted their money on you, then big chance that they will also help you.
meanwhile if you took a loan just because you want to keep all the shares for you just because you don't have that idea to share the ownership of the startup with other people then you should know that its not gonna be easy.
there are so many scenarios where things can go wrong including your startup further tanks and you are in need to pay the debt while having absolutely nothing to your name.

but if you're so sure that you gonna make fortune with your startup getting a loan can be taken into consideration.
otherwise its just a big no no, many things can go wrong, not all startup will succeed what are the odds of your startup being that 10% remaining startup that gain success and foothold while lacking in various area.

[peter0425]

I wouldn't mind having another set of brains to help me propel the business forward. I think finding an investor that has credibility and knowledge about my field of business can be nothing but helpful. They would obviously want what is best for the business as their money is also at stake here. With this in mind, I am sure we can create a good and professional relationship together that could make the business succeed.

[ancafe]

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?

This is a problem faced by many people because even though they have ideas and the ability to develop a business, not having capital support will prevent them from developing. Taking a loan is not a problem if you want to develop a business because we know that this decision must be made, and on the other hand, looking for capital support from investors will be a much more difficult burden. Taking money from investors would be very risky because from what I have seen, taking this opportunity will only make things worse when we work together to share profits.

I personally prefer to run a business on my own and if the business potential has long-term prospects, it would be much better to seek capital loans rather than expecting funds from investors. Third parties will always create problems in the future because when our business runs well there will be problems and it could be that they intend to control the business.

[blckhawk]

Loan would be better in my opinion but the best one is saving enough money so we can have some capital for when we want to create our start up, that way, it would reduce the amount of money that we're going to loan when we're planning to do it, less money to pay back and more money for yourself if the start up is a success. Regarding investors, maybe you can ask your parents or closest friends to chip in but a stranger investor is going to be a big no in my opinion.

[dothebeats]

If I believe that my business idea and foundations are rock-solid, I would go the route of asking for a loan to fund my business and try to work out my interest rates/payment plan that will benefit me in the long run. I would gather investors later when I have established my business since my credentials are already established, and I have a working business where my investors can base their decisions on. The more figures I make, the more investors will come in to support my business and its expansion.

While it's not wrong to ask for investors early on, it's hard to really get them to agree into putting funds when they are not seeing any numbers. It's 100% risk on them and lessens the risk on you, hence it will be difficult to get them jump into a boat without knowing its foundations and whether it's going to sail far or sink fast.

[harapan]

I would prefer to take the second option, find an investor who will finance your business idea and both of you will be business partners. This is actually a win-win situation because you are not going to lose any but only your time and efforts to your business, and as long as you are confident that your business idea will work and grow in the process, then the rate of success is higher.

However, if you want to solely run your business and suicide on taking a loan, I think that’s putting yourself and your business at a high risk. You will face bigger pressures instead, on making sure that your business will work so you can pay your loan, and on securing a back up plan where you will get your payment in case your business will fail which I believe has really high chances especially if the competition is stiff and you have not build yet a strong foundation of your business.

If not the difficulties that people have in raising money for their businesses,why would someone even consider to take a loan to start up a business.Its very risky for you and the business entirely.
The only advantage it has over you is that it helps you to start the journey;it helps you get started,and the excitement that it puts you into can make you forget about the conditions involved in it.
Personally I think its best to start a business with no debts and loans,if you borrow to start a business,you'll loose what you don't have.

I can say it is not wrong to start a business by borrowing or making a loan, but you need to think about the risks involved.The risks you'll face becomes a failure in the business already at its first stage.Start with what you have,encourage yourself,build it,seek advice's from financial experts and be in charge of your success.

[lovesmayfamilis]

Firstly, you must understand that your idea is so unique that investors may also approve it, and getting a loan would not be a problem for you. For me, both are the same. Not a single competent investor will invest money in a business that is lost in advance, and if so, then you will remain in debt to him. So what's the difference? By taking out a loan, you will independently go through all stages of business development, step by step. Yes, it is slow, but for the investor, you will have to regularly provide results, which also does not seem convenient. The main thing, I believe, is the idea, its uniqueness, or originality, and your environment, connections with which you have provided yourself should be so diverse that your business can withstand all the unexpected.

[davis196]

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

1.Usually 99% of the people, who think that they have "an incredible business idea" are fooling themselves and their "incredible business idea" kinda sucks.
2.Usually a big percentage of the people, who actually start a business around their "incredible idea" end up failing.
Getting a loan means that you take all the risk for you business, while getting an investor to buy shares of your company means that the investor will also take a part of the risk. The second option is better, but I don't see any small businesses outside the Silicon Valley getting funding from investors. Investing in startups is an extremely risky business, since most startups fail in the first 3 to 5 years of their existence.

[passwordnow]

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

It depends on how huge your business idea is but you know what's the best thing to do? it's always to test the waters. Start small and that's it. You don't have to go with seeking funding on an instant just because you have a great idea. Ideas are there but the application of it and doing all the task and growing it is another thing. Start small with the least that you can put on that business. And if you're fortunate to grow it, you already have the results and investors will have no doubt investing to you because you have what it takes for you to grow their money as well through your business funding.

can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

This is only going to work if your business is already big and you already made a system that keeps you generating money and you can easily manage people. But as a start up, I wouldn't bring someone who's just there to contribute money. I want someone to contribute even with little money but mostly to the business itself and has got something to offer for the growth of it. IMO, it's not just always about the money but if you can handle to have onboarded with these kinds of people on your start up, you go ahead. Or might just find an angel investors that will also involve themselves to the business.

[jaberwock]

If you think taking a loan from banks is hard since the borrower need to agree with so many strict terms, but I'm 100% believe looking for investors that want to invest in your start-up is way way way more harder than taking a loan from banks.

Let's say you're an investor, there will be a lot people reach you and ask you to fund them, but how you can be so sure if those people who run the start up aren't scammers? how you can be sure you will earn profit like their promise? you might not want to invest in someone project because you think it's better to invest in Bitcoin or your own business.

A lot of people hesitate to invest in BTC thinking it won't grow up huge anymore. This is the advantage of investing in a start-up project, although the catch is the risk is also a bit higher.

We can only do some practice to enhance our chance like ask for a whitepaper or roadmap of their project, for us to know that there is truly a project that they are working on and they must prove that the documents was theirs because it's also easy to grab someone else work online. As for loaning money, we must realized that there are plenty of platforms or companies who are now offering it. We can always opt for them if we are having a hard time applying inside the banks.

[michellee]

I prefer to use my money first for startups. After my business starts running and growing, I may think about getting a loan to develop my business. But as much as possible, I will not borrow money from third parties.

That's because I think about how hard it is to pay back the loan every month. Business will not always increase and sometimes business will look stagnant and not move at all because of competition. That's why if you want to get a loan to start a business, you have to think about it first.

We should start from the capital we have so we don't think about loan problems. Many people fail in running their businesses because they have difficulty paying their loans. But if you are confident in what you are doing, you can still get a loan.

[angrybirdy]

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

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;

 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 there is an opportunity or an acquaintance who can be found to invest in the business we plan to do, let's not miss that chance and try to give a proposal, also make sure that the business you are planning is feasible so that they will be more interested in investing, but if we don't know anyone or can find anyone to invest, there is nothing wrong if we get a loan to use to build the business we want to do but it is risky because you are the only one liable to pay the money you borrow and of course the business will start , it is possible that there will be a big adjustment so it won't be that fast before the money you borrowed is returned.

[knowngunman]

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?

If I have a well thought out business idea which I think is very genuine, getting a loan will not be a bad idea and as well, looking for an interested investor will also not be bad either but before taking the loan I will have to consider the terms and conditions been set by the loan giver whether it is what I will be able to cope with, if I can not cope with the terms and conditions or the interest rate, I will switch back to an investor who has like business idea as mine. However, the whole thing depends on someone's location because here in my place, no one will be interested to risk their money on your theory ideas as an investment. In such cases, loan will be the best option if one is ready to face whatever the outcome might be eventually.

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?

Trying to start up the business with your own little effort will elongate the process and someone with a reasonable capital might steal and takeover that idea from you if care is not taken. I know it takes process to build an investment or any business but if the second option is available, I will definitely go for the second option and kickstart the business with a force. If the agreed percentage with someone ready to provide the capital is favorable, I will gladly accept. Providing capital for a business idea not your own is a risk that not everyone would like to venture into. If someone agrees to partner with me, I will go for that than to try to start with a little beginning.