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

[0t3p0t]

Personally I prefer finding an investor. Well yes profit won't be as big as expected but at least it would be a safer option. Taking a loan would be a good thing if you really see huge potential to what you are trying to cook because it would be a gamble if you're pushing the risks up. If your investment won't generate enough to pay the interest then basically you are putting yourself in huge debt. This is why I believe finding an investor would at least balance risk and profit ratio, at least temporarily. Just depends on where you would be using the money actually. There are odds with taking a loan and same goes with finding an investor.

For example, you are aiming for a franchise. If that franchise has enough popularity and organic customer or client, then it would be fine taking a loan to start things up. But if it literally a start up, then you might consider the other option 'coz it will help you in all aspects; growing the business, and help with finances, bills, and capital.

Agree. Too risky to get a loan if failure is inevitable since it's a start up business it needs trial and error to assess whether it's worth it to continue or notbecause here in my place a lot of businesses have failed for some reasons and what's interesting is that they use loan money for that and since it is a loan then it needs to be repaid and that's when they take another loan again and again and again. Option two would be better as investors will decide if your business is worth it to invest in and of course since you are looking for investors then I assume that you are ready enough to take risks and stuff to take advantage of the opportunities.

[el kaka22]

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.

[jrrsparkles]

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 just reminds me of another thread which is like I have so many ideas to become rich but I don't know how to do it and that's actually the problem we have to make everything right to achieve what we want to and in the financial journey getting capital is going to be hell for someone who doesn't have financial support from their family side. As I mentioned previously even if you made up your mind and getting loan still it is not going to be easy cause bank doesn't give loan to everyone especially for startups until they get some valid collateral as assurance so in that case od default they get something to seize and recover their lend amount.

[Hamphser]

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?

When trying out to materialize an idea that you do have in mind but you dont have that capital to start then speaking on physical world then you could potentially be that finding some potential investor but its not something that easy as it sounds on which you would really be needing to provide everything about the business and overall. This could really be done also in online but the main issue on online is that
you cant really be easily to find someone to invest into something that they cant be able to see nor having that kind of assurance or security of their funds. So it would really be having that better odds or chance on getting some investor on offline or physical but just like been said that its not something that would really be easy. You would be needing to prove out everything.

On the moment that there's someone who didnt been able to tend to invest then this is where you would be considering yourself on taking up a loan. It would be your last resort
and of course risks management is needed whether it would be something that worth the risks or not.

[Fortify]

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?

It depends what you're after really and how accessible funds are to you in particular. Banks are often quite skeptical and protective about lending large sums of money on untested ideas. If you went to them with just a plan on paper, you'd be lucky to get offered a loan but the rates would be extremely high too - if you're asking for say $50k+. If you go with an established business that just needs a bit more capital with a solid expansion plan in place, you'd probably be better going for a loan as you won't have to surrender any equity. If you get an outside investor, you're likely to have to give up a portion of the ownership, in the form of shares, as a trade - along with paying back all the borrowed capital and having a believable business plan too.

[bSpend]

 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 very tricky one to be honest, but I think a smart way to look and answer this question is to first consider the type of business in question.

It is impotant for us to understand that business ideas are categorized, and what determines whether a business idea needs a loan or investors depends on the category of the idea, there are businesses an individual can manage or run successfully, this type of business need loan.
But a business an individual can not run alone, but needs alot of hands and ideas to come together to ensure success of the business, this one requires investors, and this type of businesses usually evolve to become a big company in the future.

[ancafe]

This is a very tricky one to be honest, but I think a smart way to look and answer this question is to first consider the type of business in question.

Business mitigation is important so that when making the decision to take out a loan we don't have problems in the future and we must understand the business we want to run.

It is impotant for us to understand that business ideas are categorized, and what determines whether a business idea needs a loan or investors depends on the category of the idea, there are businesses an individual can manage or run successfully, this type of business need loan.
But a business an individual can not run alone, but needs alot of hands and ideas to come together to ensure success of the business, this one requires investors, and this type of businesses usually evolve to become a big company in the future.

On a small or large scale, we don't need third party investors to run the business, as long as we have capital that we can use. Unless the scale in question requires the support of other documents such as permits which are difficult to obtain, so in conditions like this we need another party as a person who is able to take care of all needs. Business ideas have a level of success and it must be seen according to our ability to develop.

I think we need to make mitigations and plans for the business we run so that when we want to make a move we know what steps to take. There are many business people who fail because they don't understand the business they are running so they are unable to see the adjustment steps to achieve success.

[barisbilgili]

 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 very tricky one to be honest, but I think a smart way to look and answer this question is to first consider the type of business in question.

It is impotant for us to understand that business ideas are categorized, and what determines whether a business idea needs a loan or investors depends on the category of the idea, there are businesses an individual can manage or run successfully, this type of business need loan.
But a business an individual can not run alone, but needs alot of hands and ideas to come together to ensure success of the business, this one requires investors, and this type of businesses usually evolve to become a big company in the future.

In my opinion, this is more appropriate, because it is not always the right path to take in all things, as well as in terms of building a business, it could be that we are able to do it ourselves or have to work with a handful of groups, so in terms of boosting the business, sometimes we also need investors or in certain businesses we only need loans.
I think it all depends on how big or small the business is and because it can also calculate the risk so if we are able to face the risk then taking a loan is not a bad thing.

[adaseb]

Most start ups would rather get loans but the problem is that most banks don’t want to lend out money to start ups because a large percentage of them fail and when it fails they don’t get their money back.

Getting a loan for an old business is different because those actually generate profits right away. Say somebody getting a loan to finance a McDonald’s location. That is pretty low risk to the bank. But a start up is completely different because it’s an idea which might not pan out.

So they have no choice but to get investors and sell them some equity in the business. It’s because the investor is taking a huge risk in lending out money.

[OrangeII]

Yes, both are very important things. Personally, I wouldn't want to build a business on loans, but if that was the choice, I would probably part with the money for development and attracting investors. After all, both are very important things. In fact, when we have developed a startup, I don't think it would have been successful without investors in it. However, attracting investors without a startup, I think it will be difficult to convince investors that this can be a very good project. However, it is too risky to borrow money for just one of them. It's best if you borrow money, think about how the startup can run, and have money left over to attract investors.

[wxa7115]

edited

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?

The bold part is why it is way better to get an investor over taking a direct loan, an investor will not only bring with him the money needed to make your idea a reality, they will bring expertise you do not have and a bunch of contacts you can use to make your idea grow.

Now it is true that you will have to give a significant portion of your business away, but taking into account that without their money and expertise your business idea may remain an idea forever, I think this is a fair trade.

[shield132]

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?

Loan interest is very high too in my region and for that reason, many people were unable to pay the credit that they have taken and ended with giving up on their business idea while having to pay the debt for years.
Banks have their place in business but for new businesses started by regular people, banks aren't the great choice because they are too risky for regular people. If you find an investor and business goes wrong, you aren't forced to pay the debt to an investor, the financial loss is on the investor but on the other hand, if a business succeeds, you will have to share the profit with the investor. If you use a bank, all profit stays with you but you carry all the responsibility too and most of the time it's very hard to pay the debt that a failed business leaves. I would choose to get an investor every day. Besides financial support, you get new connections and meet new people.

[kingvirtus09]

It depends on the person. If he has a business that he wants to build and knows that it is very small, it is better to just get a loan and use the loan to start the business that you want, because we are the only real ones. Who knows if we can really turn the business around or grow it?

Now, if you are worried about turning it around properly just because you heard that the business is good or trending now, I think it is better to find a business partner or investor; he is the capitalist, and you are the one who will manage the business, and it is in agreement with you where you agree.

[Bobrox]

Personally I prefer finding an investor. Well yes profit won't be as big as expected but at least it would be a safer option. Taking a loan would be a good thing if you really see huge potential to what you are trying to cook because it would be a gamble if you're pushing the risks up. If your investment won't generate enough to pay the interest then basically you are putting yourself in huge debt. This is why I believe finding an investor would at least balance risk and profit ratio, at least temporarily. Just depends on where you would be using the money actually. There are odds with taking a loan and same goes with finding an investor.

For example, you are aiming for a franchise. If that franchise has enough popularity and organic customer or client, then it would be fine taking a loan to start things up. But if it literally a start up, then you might consider the other option 'coz it will help you in all aspects; growing the business, and help with finances, bills, and capital.

For start up business better finding an investor than taking loan but not easy how to make investor believing with our start up business, need time and hard work progress to make an investor believing and want to invest their money. I think looking forward with start up business progress if has bigger ratio to earn much profitable in the future is not problem getting loan behind difficult to find an investor. In other side, has relationship with an investor we must spending profitable with them depend on agreement release usually around 50% for investor and left 50% for the start up business owner.

For me, prefer taking loan and earn fully profit for my self than finding an investor and must spending our profitable with them continues until how long our start up business running. You want to earn 100% profitable for your self its better looking for loan but want to spending profit of your start up business looking for investor support.

[arwin100]

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?

Loan interest is very high too in my region and for that reason, many people were unable to pay the credit that they have taken and ended with giving up on their business idea while having to pay the debt for years.
Banks have their place in business but for new businesses started by regular people, banks aren't the great choice because they are too risky for regular people. If you find an investor and business goes wrong, you aren't forced to pay the debt to an investor, the financial loss is on the investor but on the other hand, if a business succeeds, you will have to share the profit with the investor. If you use a bank, all profit stays with you but you carry all the responsibility too and most of the time it's very hard to pay the debt that a failed business leaves. I would choose to get an investor every day. Besides financial support, you get new connections and meet new people.

Hard to risk something using a money that we loan that's why for me this is not advisable to do especially if we are just starting up since we might fall down with that knowing that we need to pay our loaned amount on the agreed timeline with huge interest with it. That's why its good to have a open minded investor which is open up on everything and know the risk of what he's trying to enter. But also if the investor is greedy and doesn't know about there's a chance that you might fail then maybe you will get an issue with them. That's they make sure to have clear written agreement on the contract and be transparent of everything so that the investor would know about certain possibilities that they might face. But for sure they will not go on risky idea so we should offer something unique and useful so that we can catch their attention and success rate will go high so that we will be happy and the investor could gain something in return.

[CryptoBuds]

edited

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?

The bold part is why it is way better to get an investor over taking a direct loan, an investor will not only bring with him the money needed to make your idea a reality, they will bring expertise you do not have and a bunch of contacts you can use to make your idea grow.

Now it is true that you will have to give a significant portion of your business away, but taking into account that without their money and expertise your business idea may remain an idea forever, I think this is a fair trade.

But I think convincing someone to believe in your idea and be willing to invest in you is extremely difficult compared to borrowing money and implementing that idea yourself. If you think you can leverage their expertise and relationships to make your business a reality, you need to pitch them an idea that is unique enough and commensurate with what they bring to you. Otherwise, no stupid investor will invest money in you and give you everything they have while you don't have anything special that they need. Not to mention, in case you have to depend on them for capital and you also depend on them for expertise and relationships, the profits you earn will certainly not be significant.

[Yaqs15]

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.

Freedom matters a lot for a responsible person. when I choose to go for a bank loan, I have the full support and control over it. I'm aware of the huge risks that are involve in going for a bank loan, if going for a loan will be more accessible and you have good ideas of what you are about to do with it, better take it and have the control and freedom.
If you are afraid of risk taking, those who take it will hire you to work for them.
So if I have technical ethics and business ethics, i will rather go for a loan.
But if you are afraid of taking risk and that is what will stop you from going for loan, then ask your investors if he or she has ever taking risk, that is loan? the answer will be capital Yes!! if that should be the case, then why can't you do same?
The entire life is all about ups and downs but when you don't quit, their is a very great potential that there is a light beyond the tunnel.

[Iranus]

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?

Loan interest is very high too in my region and for that reason, many people were unable to pay the credit that they have taken and ended with giving up on their business idea while having to pay the debt for years.
Banks have their place in business but for new businesses started by regular people, banks aren't the great choice because they are too risky for regular people. If you find an investor and business goes wrong, you aren't forced to pay the debt to an investor, the financial loss is on the investor but on the other hand, if a business succeeds, you will have to share the profit with the investor. If you use a bank, all profit stays with you but you carry all the responsibility too and most of the time it's very hard to pay the debt that a failed business leaves. I would choose to get an investor every day. Besides financial support, you get new connections and meet new people.

Hard to risk something using a money that we loan that's why for me this is not advisable to do especially if we are just starting up since we might fall down with that knowing that we need to pay our loaned amount on the agreed timeline with huge interest with it. That's why its good to have a open minded investor which is open up on everything and know the risk of what he's trying to enter. But also if the investor is greedy and doesn't know about there's a chance that you might fail then maybe you will get an issue with them. That's they make sure to have clear written agreement on the contract and be transparent of everything so that the investor would know about certain possibilities that they might face. But for sure they will not go on risky idea so we should offer something unique and useful so that we can catch their attention and success rate will go high so that we will be happy and the investor could gain something in return.

Not only you, but I see that many people also do not intend to borrow money to implement their ideas and that means we are not confident and certain about our ideas. We are afraid of failure and getting stuck if our ideas fail, but with that in mind, can we find investors who are open and willing to invest in our idea? As you said, the rich will not be so naive as not to make any commitments to us, while we are still not sure about our ideas. Therefore, implementing a business idea based on the investment of others is not feasible.

Personally, if I have a unique idea, I will risk borrowing money and doing it myself instead of having to rely on others. I find relying on other people's investment capital to be much riskier because no one is stupid to invest in us without any conditions.

[Maslate]

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.

I have to agree with you. Not all investors would easily trust your business idea that it’ll work and create profits. And if ever they will, they won’t treat you as a business partner but act as if they solely own the idea since it’s actually their own money that they’re going to risk. The reason why those with brilliant ideas never come into realization.

However, if I’m actually in this position being highly confident with my business idea that it will surely prosper, then if taking a loan would be disapproved, then maybe I have to try borrowing funds  from my family and friends and pay them with my monthly salary with interest. That way, I can move my brilliant idea into the next level, hoping that it would result into fruition.

[Vinaa77]

It depends on the person. If he has a business that he wants to build and knows that it is very small, it is better to just get a loan and use the loan to start the business that you want, because we are the only real ones. Who knows if we can really turn the business around or grow it?

Now, if you are worried about turning it around properly just because you heard that the business is good or trending now, I think it is better to find a business partner or investor; he is the capitalist, and you are the one who will manage the business, and it is in agreement with you where you agree.

It's true, in this case it really depends on the person running the business, if they need capital and know very well that the business they are building will be able to run well of course they can take out a loan and must be able to pay off their loan.
If we ourselves are still worried about the business we are running then it is very unlikely that other people will be able to partner or invest their capital in the business we are going to run.