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

[Promocodeudo]

if at the start, it's better to get investment directly compared to a loan, that's because if you get investors then the money they invest can become capital and you won't have the responsibility to pay that capital, you just need to develop your company and provide results. according to what you promised. while on a loan, you need to pay it on time and there is a greater responsibility that you need to pay when you get a loan, not to mention you need to pay interest which is a burden.

because of this, it is better for me to be able to get investors in the early days of building a company, rather than a loan. but that doesn't mean a loan isn't needed, it's just that it's needed when your company is already getting stable income and you want to intend to grow the company bigger with your own resources.

You are very correct, for me there are reasons why I wouldnt want to approach a loan facility for a startup investment although it will all depend on their terms and conditions if I will be able to meet up, no matter how it is, collateral remains collateral and as a new investment one needs to be careful because once there is any form of default in the terms given to you by either the loaning bank or microfinance firms just have it in your mind that your collateral is gone, so the best way to start is to convince investors to invest so that profit can shared accordingly, it is not a good idea to risk many things at the same time, risk should be checked and minimized in other to avoid regret, every company started small so we shouldn't be tempted to make a wrong decision or step that may lead us into debt or losing the only valuable thing we own.

[livingfree]

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?

This varies on that thought for my business idea. If I think that it is going to click and I am willing to give time and effort for it, I might sell some of my stuff just to fund its few months of experiment and operation.

And if it doesn't work, that's fine. No loans, no heartbreaks but lessons will be there.

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?

I like to do it first on my own.

If I think that I can't take it anymore then that's the time that I'll have someone to back me up and help me with it.

[Cryptomultiplier]

if at the start, it's better to get investment directly compared to a loan, that's because if you get investors then the money they invest can become capital and you won't have the responsibility to pay that capital, you just need to develop your company and provide results. according to what you promised. while on a loan, you need to pay it on time and there is a greater responsibility that you need to pay when you get a loan, not to mention you need to pay interest which is a burden.

because of this, it is better for me to be able to get investors in the early days of building a company, rather than a loan. but that doesn't mean a loan isn't needed, it's just that it's needed when your company is already getting stable income and you want to intend to grow the company bigger with your own resources.

You are very correct, for me there are reasons why I wouldnt want to approach a loan facility for a startup investment although it will all depend on their terms and conditions if I will be able to meet up, no matter how it is, collateral remains collateral and as a new investment one needs to be careful because once there is any form of default in the terms given to you by either the loaning bank or microfinance firms just have it in your mind that your collateral is gone, so the best way to start is to convince investors to invest so that profit can shared accordingly, it is not a good idea to risk many things at the same time, risk should be checked and minimized in other to avoid regret, every company started small so we shouldn't be tempted to make a wrong decision or step that may lead us into debt or losing the only valuable thing we own.

Some loan companies would prefer to even fund the start-up themselves and share the profit until the loan borrowed is settled before allowing the startup owner breathe fully and compared against an investor or an angel investor, I would prefer to have an investor invest, in this way, I am not under pressure to deliver returns nor will I over stress myself thinking about how to pay back, because the amount to be paid back will be in smaller fractions or should I say it would be like dividend from investment in stocks and if the investor cares so much about the success of the business, I would have had an advisor already without needing to pay for one or seek advice from friends.

[EluguHcman]

First we need to be entrepreneurly wise in such decision making, so let us think an aspect between both of the options that has the potentials of attracting productiveness to the firm and also consider the interests rate of returns amongst them also the T&C to be applied so that we can meet them up as much as we can to stay debt free.

So I personally would go by letting an investor in because the investor would stand as a stakeholder to the firm and by so doing, he would as well play some flexible tasks by which his awareness could play to spread the existence of the firm.

Anyhow, the Investor could also facilitate for the contract to get done and focus more on other sections that my maybe productive to him.
However, investor may have some level of understanding when you could not comply to pay in an agreed time due to the fact that he also understand the conditions of investment and trading while loaning institutions don't care whether your venture is doing well or not. All they expected is to abide to the agreement.

I summary, loaning institutions are too strict and T&C abiding while investors can at sometimes slightly adjust with level of understanding.

[Davian144]

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.

In general, things like that really depend on the intentions of the person who owns the business because that person really intends to develop the business bigger. Of course he will look for ways to do this in order to develop it according to the tastes he wants and from the options you said, I think the option of looking for business partners and investors is a little more suitable than directly taking out a loan which might be felt by the business owner himself. Although logically taking a loan is not wrong, remember the aim is to make the business grow more.

[slapper]

Loans, sure, they can be a bitch. Interest rates and conditions might be burdensome. But think of it like this: you're not simply taking out a loan, you're purchasing time. You have time to construct your product, prove your idea, and gain traction. If you play your cards well, you may use that loan to strengthen your position when talking to investors. You have a better story, greater leverage, and less equity to give up

Investors are different. These guys want the next big thing, not just a return on investment. They want to be part of something big that will affect the world. They want a big piece of the pie, too. You must choose partners wisely. You need investors who share your vision, have a track record, and can contribute more than money. Advice, skills, and connections are valuable

[kryptqnick]

When it comes to a startup, it's important to understand that no matter how passionate you personally feel about the project, there's a good chance it will fail to deliver what's expected from it. That makes taking a loan incredibly risky, as there's no guarantee you'll be able to return that money. As for investors, I think it's not a bad idea per se, as long as it's articulated in the contract that you cannot guarantee profit or even return of the invested money. Investment happens at the personal risk of investors. Ideally, I'd be looking for a third option, such as saving up money to give it a shot, or looking for a grant to kick-start the project. When you get a grant, you do usually need to report the results back, but you don't need to return money to anyone. Grantors are not going to profit from the result in any way, so there are no direct expectations in that regard.

[Rockstarguy]

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?

Why I would preferred an investor to join me to invest in my business is that an investor is ready to invest any amount of money just to make sure that the business becomes successful. Business like this their won't be  fears if the business won't do well but doing business alone and taking a loan from the bank, you may not want to take big amount just because you just want it easy to be able to pay back the loan and this amount of loan taken may not even be enough for the business.  When their is no good money at hand to put to invest in business,  the business struggles to grow.

But when you have investors around you to invest in your business,  money won't be a problem for the growth of the business. Many failed businesses is as a result of no good money. Sometimes taking loan to begin a business may not give you just what you want. The most important thing in business is for the business to stand. Partnerships is a good strategy to start a business that will stand.

[Juse14]

If we talk about desires, rather than taking out a loan from a bank or anywhere where the interest is relatively high, of course I would prefer to collaborate with investors. However, the problem is, which investors are willing to work with beginners who still have minimal understanding and experience to enter the business world. Will they trust me enough to provide me with capital..?

For a beginner who has just entered the business world, it seems that looking for investors is not an easy thing, in contrast to those who have been in the business world for a long time, who have tasted the sweet and bitter tastes of the business world, whose understanding and experience are quite mature. Maybe it is not too difficult for them to get investors, because the prospects regarding the promised profits are clearer compared to investing in beginners.

[stomachgrowls]

If we talk about desires, rather than taking out a loan from a bank or anywhere where the interest is relatively high, of course I would prefer to collaborate with investors. However, the problem is, which investors are willing to work with beginners who still have minimal understanding and experience to enter the business world. Will they trust me enough to provide me with capital..?

For a beginner who has just entered the business world, it seems that looking for investors is not an easy thing, in contrast to those who have been in the business world for a long time, who have tasted the sweet and bitter tastes of the business world, whose understanding and experience are quite mature. Maybe it is not too difficult for them to get investors, because the prospects regarding the promised profits are clearer compared to investing in beginners.

No matter which method or path you would really be taking on which its never been easy.

1. Getting investors?
How you would be doing it?
Where you would be finding?
Experience or inexperienced?

2. Taking a loan?
It would be feasible?
You could be able to reach ROI in time?
It would be sustainable?

These would really be the questions that you would really be able to encounter at the moment that you would
be tending to deal up with both things. Decisions be made will really be just that entirely be depending on how will you would
be able to handle up the risks in both possible options. Getting loan or trying to seek on investors?

Building up a business without some fund for start up would be a huge challenge whether you are lacking or just that too short on budget.
Then you could really be having those kind of options.

[dezoel]

Different people will have different perspectives regarding this based on their understanding and thought processes. I would say it depends on how confident you are about your business idea. If you think that your business idea is great and the chances of it succeeding are way higher than it failing then I would say it is better to take a loan and fund your business with it because even though you might need to pay some interest, you will at least be the only owner of the business when it is all setup and running very well.

When you get an investor for your business on the agreement that they will get a certain percentage of share in the business, it can be a costly deal because once the business starts growing, you will have to give a larger percentage to the partner than you might have to give back as the repayment for the loan.

[Reatim]

You are very correct, for me there are reasons why I wouldnt want to approach a loan facility for a startup investment although it will all depend on their terms and conditions if I will be able to meet up, no matter how it is, collateral remains collateral and as a new investment one needs to be careful because once there is any form of default in the terms given to you by either the loaning bank or microfinance firms just have it in your mind that your collateral is gone, so the best way to start is to convince investors to invest so that profit can shared accordingly, it is not a good idea to risk many things at the same time, risk should be checked and minimized in other to avoid regret, every company started small so we shouldn't be tempted to make a wrong decision or step that may lead us into debt or losing the only valuable thing we own.

When we are deciding on a contract, do not become too overconfident and start listing too important things as your collateral because you are not afraid to lose them. All businesses go through rough times and no matter how good your idea is, it will most likely fall victim to different kinds of challenges too

[X-ray]

If we talk about desires, rather than taking out a loan from a bank or anywhere where the interest is relatively high, of course I would prefer to collaborate with investors. However, the problem is, which investors are willing to work with beginners who still have minimal understanding and experience to enter the business world. Will they trust me enough to provide me with capital..?

For a beginner who has just entered the business world, it seems that looking for investors is not an easy thing, in contrast to those who have been in the business world for a long time, who have tasted the sweet and bitter tastes of the business world, whose understanding and experience are quite mature. Maybe it is not too difficult for them to get investors, because the prospects regarding the promised profits are clearer compared to investing in beginners.

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.

[Kakmakr]

It all depends what percentage of your control, you are willing to relinquish. The loan from a Bank will not give them any say in your day-to-day operations, because they are only interrested in the loan repayment at the end of the month.

When you get investors to invest money into your business, they want a share in the day-to-day operations and if they have a controlling percentage of the "shares" they can execute a hostile takeover of your business, when you become succesful or they can sabotage your decisions with their own agendas.

[iv4n]

Different people will have different perspectives regarding this based on their understanding and thought processes. I would say it depends on how confident you are about your business idea. If you think that your business idea is great and the chances of it succeeding are way higher than it failing then I would say it is better to take a loan and fund your business with it because even though you might need to pay some interest, you will at least be the only owner of the business when it is all setup and running very well.

When you get an investor for your business on the agreement that they will get a certain percentage of share in the business, it can be a costly deal because once the business starts growing, you will have to give a larger percentage to the partner than you might have to give back as the repayment for the loan.

I think the same, a lot depends on how confident someone is in their idea. In addition, the idea itself is important, while some business plans require a lot of money for implementation and initial work, some plans can start more slowly and on a smaller scale... which provides a lot of time to upgrade over time.

So it's foolish to talk about who would do what in this case without knowing all the factors. It's nice to take a loan and have full control over your business plans, but it's not bad to have investors and share with them both the good and the bad... if the business takes off, there will be less profit, but if everything fails, you can't bear the full burden of it. Basically, without knowing all the factors and thinking everything through, it's hard to say anything more about this.

[batang_bitcoin]

When you get investors to invest money into your business, they want a share in the day-to-day operations and if they have a controlling percentage of the "shares" they can execute a hostile takeover of your business, when you become succesful or they can sabotage your decisions with their own agendas.

Not all of the wants to get involved. I think there will be a few that just want to lay money and become an investor without doing anything. They're just there as funders but choose the ones that will contribute to the business if you're getting investors that can help your business thrive.
But be careful, because they might change the actual game plan of the business to what they think is right and you as the CEO or owner, still has got the final say with your operation processes.

[aioc]

 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 good business plan then I'll take a risk on my idea by taking a loan and be responsible for how I oversee my business I am answerable to myself and I am more motivated since its my reputation is the one at stake here, no investor will come and ask the progress and the status of the business

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 it's a start up I prefer to be on my own and when the project will be moving on the next level that will be the time that I will onboard people in my business but it has to be people who can contribute with ideas and not just money.

[Baki202]

When it comes to a startup, it's important to understand that no matter how passionate you personally feel about the project, there's a good chance it will fail to deliver what's expected from it. That makes taking a loan incredibly risky, as there's no guarantee you'll be able to return that money. As for investors, I think it's not a bad idea per se, as long as it's articulated in the contract that you cannot guarantee profit or even return of the invested money. Investment happens at the personal risk of investors. Ideally, I'd be looking for a third option, such as saving up money to give it a shot, or looking for a grant to kick-start the project. When you get a grant, you do usually need to report the results back, but you don't need to return money to anyone. Grantors are not going to profit from the result in any way, so there are no direct expectations in that regard.

I think when we want to start up a business we should also have a lot of plans because just as you said what of the project did not go as planned a lot of business have crashed just because the person that established it did not make plans incase a challenge is encountered and their ia no way you can aviod challenges when you want to startup business. With the short analysis you gave and when the start up is based on loan and things did not go as planned then you become a loan defaulter because how do you pay back the loan when their are no plans made it will be better to get investors and their will be a share in percentage.


That's much more better than going to take loan. And talk of the interest attached to the loan the longer the duration the higher the profit. And investor will be considerate because they know how start ups are and everything will be legally documented so they know the risk when investing in start ups. The best advice will still for you to go for investors that. Taking loan.

[Strongkored]

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?

Looking for investors is a safer choice because the risk is smaller than looking for a loan, with note that we must be prepared to get smaller profits and there is a chance that our business will be intervened by investors if the cooperation agreement is not clear
Taking loan when the business you are running is not going well we still have to pay off the debt, but for beginner both are things that are difficult to obtain, so beginners will always have difficulty financing their business unless that is the case. is a business that is already running just needs additional capital.
So what is better is to start the business with limited capital and after that it is developed and when the form is visible then we can start looking for investors or loans to make our business even bigger.

[Zoomic]

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.