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

[erep]

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.

You are right, we have a loan option to realize business plans that we hope to increase financial needs in the future, the loan option is not a bad decision as long as you can guarantee to pay every month without problems, but you have to understand the risks of business sometimes not being what we expected in fact we will despair if you are not ready to become a businessman, so make sure you have implemented every step to become a successful businessman, you have to go through many obstacles without giving up, when your business is successful then many investors will join your business.

Because partnering with investors is not as easy as we imagine, you must have a brand that is trusted and has a reputation in the market, then they will help increase your business reach more widely so that your business has the opportunity to compete in global business.

[boyptc]

Because partnering with investors is not as easy as we imagine, you must have a brand that is trusted and has a reputation in the market, then they will help increase your business reach more widely so that your business has the opportunity to compete in global business.

A startup don't have a brand yet and that's why it's not a problem for those that are proposing and trying to look for an investor.

Investors understand that but the struggle is there if the project owners or proponents won't get trust easily by the investors. The reputation is what at stake for the investors but they typically invest not only because of the potential of the business.

But also because they trust the proponents.

[mirakal]

Because partnering with investors is not as easy as we imagine, you must have a brand that is trusted and has a reputation in the market, then they will help increase your business reach more widely so that your business has the opportunity to compete in global business.

A startup don't have a brand yet and that's why it's not a problem for those that are proposing and trying to look for an investor.

Investors understand that but the struggle is there if the project owners or proponents won't get trust easily by the investors. The reputation is what at stake for the investors but they typically invest not only because of the potential of the business.

But also because they trust the proponents.

That’s the hardest part, of course they also want to be secured knowing they will risk their own money for simply a startup. If I were a big investor, I would also be hesitant to invest in an uncertain project knowing that anytime it will fail and lose all my money invested.

That’s why If I have a brilliant business idea and I really think it will hit big in the future, then I have to suicide on it. I will definitely take a loan to make my investment possible, even if there’s still uncertainty if it will prosper or not.

[Chilwell]

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.

You will be 100% happy when nobody knows anything about you. When you are running your business without the interfere of anybody, you are secure to some extent. although, you can not do it alone but when you are the real boss of your self, you are free to decide what ever decision you want to take. when I choose to go for a bank loan, I have the full control over it. Yes I know there are 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? Our life is full of risks. Is better you take it than to work for those that took it since we can do it again and again If you fail don't quit get up and learn from the past mistake by so doing, there's hope you are going to be successful in the end.

[MissNonFall9]

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?

I think it is better to start a business by partnering with a like-minded person if you want to start a business risk-free initially. As the loan interest rates are high and I am not clear on how much profit your contemplated business will bring. After the business becomes dynamic it will be convenient to take a loan later to increase the scope of the business.

I believe there are two main benefits to having a like-minded person as an investor or partner in your business. The first is that it will be easier to raise business life which is capital and the second is that business thinking will be more widespread and developed. It is known to all that two heads work better than one head. Besides it will be possible to develop the business in a very beautiful and smooth manner by sharing the pressure of business activities.

[Fredomago]

Because partnering with investors is not as easy as we imagine, you must have a brand that is trusted and has a reputation in the market, then they will help increase your business reach more widely so that your business has the opportunity to compete in global business.

A startup don't have a brand yet and that's why it's not a problem for those that are proposing and trying to look for an investor.

Investors understand that but the struggle is there if the project owners or proponents won't get trust easily by the investors. The reputation is what at stake for the investors but they typically invest not only because of the potential of the business.

But also because they trust the proponents.

It's tough  to earn that trust and with that same sentiment with both of you, struggle is really something that's needed to overcome,  it's more on how the proposal will be presented and how that proposals will be executed,  I believe that most of those who will give that golden opportunities are risking their money,  but that kind of trust that they providing if the project succeed then as investors they will also manifest decent amount of profits.

Both investors and the owner of the business needs to established the trust between them, the success of the business is more on how they will execute all the set plans and how for the better success of the  business.

[Moreno233]

Taking a loan to start a business from scratch is a huge risk because most businesses takes minimum of five years to stabilize. Depending on the nature of the business, the first few years are always full of trial, surprises and a lot of things that can make the business fail. Imagine taking a loan and the business fail, that is depression knocking at the door. Most loans I see in my country matures in three years and at most five years. In this case, the possibility of defaulting on this loan is high which is not good for a new business. Therefore, I will prefer pitching my business ideas to investors on the agreement of a share of the business. With this, I will not be under any pressure to repay loans that the profit form the business cannot even carry. 

[Z_MBFM]

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.

You will be 100% happy when nobody knows anything about you. When you are running your business without the interfere of anybody, you are secure to some extent. although, you can not do it alone but when you are the real boss of your self, you are free to decide what ever decision you want to take. when I choose to go for a bank loan, I have the full control over it. Yes I know there are 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? Our life is full of risks. Is better you take it than to work for those that took it since we can do it again and again If you fail don't quit get up and learn from the past mistake by so doing, there's hope you are going to be successful in the end.

Bank loans are a common issue in business. But loans are not a big problem if the business is managed well. Business is a very competitive thing, there is a lot of competition, so if you want to improve your business by dealing with those competitors, you need to use many new strategies.  No big business can run without bank loans. all businesses have bank loans.  So if I start a business or become a businessman then I must take a loan from a bank. and I will use them in the proper way so that the loan does not trouble me.

[Cryptoprincess101]

 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 not that some people are just too greedy when you involve them as business partners i would have suggested to partner with someone that have the funds for you to start up your business then become a shareholder because currently now, taking loans is very risky because you can take a loan and the business may not function the way you thought it would initially and loans have intervals within which you and the lender agreed for a refund with some percentage of interest so if the agreed date approaches and you don't pay back it becomes a problem to you.

The only advice I can offer now is that the best way to start up a business without having a capital is to approach someone who you know that has the money then you present your business idea/plan to them and also reach an agreement with them that you will be giving them some percentage from the proceeds of the business but don't get them involved to partner with you because what most people do now is that if they establish a business for you and sees that the business is bringing out a lot of profits what they do is to sideline you from the business and claim that they were the ones that funded the capital used in establishing of the business so instead of them becoming a shareholder it is better to open the business and you remit a percentage maybe every month or week till you have settled the exact capital used in starting up the business then you can claim full ownereship.

[boyptc]

Because partnering with investors is not as easy as we imagine, you must have a brand that is trusted and has a reputation in the market, then they will help increase your business reach more widely so that your business has the opportunity to compete in global business.

A startup don't have a brand yet and that's why it's not a problem for those that are proposing and trying to look for an investor.

Investors understand that but the struggle is there if the project owners or proponents won't get trust easily by the investors. The reputation is what at stake for the investors but they typically invest not only because of the potential of the business.

But also because they trust the proponents.

That’s the hardest part, of course they also want to be secured knowing they will risk their own money for simply a startup. If I were a big investor, I would also be hesitant to invest in an uncertain project knowing that anytime it will fail and lose all my money invested.

That's what I am telling, they invest first to the investors and next to their proposal if the business is feasible.

That’s why If I have a brilliant business idea and I really think it will hit big in the future, then I have to suicide on it. I will definitely take a loan to make my investment possible, even if there’s still uncertainty if it will prosper or not.

The same thing for me. Just as how we have invested on Bitcoin when no one is on our back, this is the risk that we will take 100% without any doubt but as much as possible, I'll take the funding from my own pocket.

If the business starts to grow, and I can't sustain it with my own funds, that's when I'll take a loan.

[X-ray]

Taking a loan to start a business from scratch is a huge risk because most businesses takes minimum of five years to stabilize. Depending on the nature of the business, the first few years are always full of trial, surprises and a lot of things that can make the business fail. Imagine taking a loan and the business fail, that is depression knocking at the door. Most loans I see in my country matures in three years and at most five years. In this case, the possibility of defaulting on this loan is high which is not good for a new business. Therefore, I will prefer pitching my business ideas to investors on the agreement of a share of the business. With this, I will not be under any pressure to repay loans that the profit form the business cannot even carry. 

startup usually on the side of a faster pace its unlike conventional business usually when there's MVP or product available it can go straight to the marketing trying to find as much user base as it can and then capitalize that amount to find an even bigger investor for the founder to increase the wealth and company valuation, I think they can eliminate the need to stabilize business, i mean current startup business model entirely depends on the massive money burning for gaining impressions and users anyway, its all about building brand that they can later on sell certain portion of the shares to the biggest investors.
so really in we are talking about the reality of building startup taking a loan won't cut it, thats not how most of the start up work, loan only works if we are building conventional business that requires scaling only then taking loan make sense.
but yeah, sometime loan just can be the worst idea ever when things are so uncertain we don't know what the direction our business gonna be taking.
its by far the most volatile and uncertain way to grow business but also the easiest way and the most profitable way to profit later on, no need to share the profit with anyone else.
i guess it just follows the common knowledge than the higher the risk the higher the rewards.

nonetheless, loan needed for a business also usually huge, there's no big money for people that aren't trustable by the banks so its another problem we need to face if we truly going down the path of getting all that profit for ourselves.

[cozytrade]

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

People who take loans to do business, most of the time spend extra money by borrowing extra money. They sometimes sell business goods to pay off the loan. We should borrow as much money as we need to do business.  Borrowing more than a few people will lead to problems. So those who have smart business sense will never covet for extra loans.

[boty]

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

People who take loans to do business, most of the time spend extra money by borrowing extra money. They sometimes sell business goods to pay off the loan. We should borrow as much money as we need to do business.  Borrowing more than a few people will lead to problems. So those who have smart business sense will never covet for extra loans.

I think it would be better if someone decided to take a loan for their business. It would be better for them to analyze first whether the business they are running will really develop well and if they think the business will continue to run well after they take out the loan and they will be able to pay off their loans and if they can't pay them off, it would be better for them to postpone the loan they want to take. You are right. Those who have business sense will certainly make decisions about their business and will never borrow beyond their means.

[MissNonFall9]

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

People who take loans to do business, most of the time spend extra money by borrowing extra money. They sometimes sell business goods to pay off the loan. We should borrow as much money as we need to do business.  Borrowing more than a few people will lead to problems. So those who have smart business sense will never covet for extra loans.

Nothing can be done more than necessity whether in debt food hatred or love because everything above necessity is harmful to us. In that case business is a more sensitive matter. So first of all we have to set our target and we should take as much loan as needed to achieve that target. Moreover if you have to bear the cost for that extra part, the greed of the business will decrease a lot and greed is a more terrible thing. So before starting our business we must have good and adequate knowledge about debt management.

[Samlucky O]

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 either 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.

It's not advisable to take loan when you don't have a running business. I believe those that take loan are people who may have invested in a particular business for long, and know the gain they might be getting, so they may decides to take a loan to make more profit from their existing business. taken a loan when you don't know Much about the business will only put you into more depth. The business that requires to take a loan as a Start up is a kind of business you have done before and knows how it is operated or a business you know you must surely make profit before taken the loan. Or you can as well look for partner that you will introduce into the business, that will finance that business then when the money comes you both can share it accordingly on how you decide.

[Xcode7]

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

People who take loans to do business, most of the time spend extra money by borrowing extra money. They sometimes sell business goods to pay off the loan. We should borrow as much money as we need to do business.  Borrowing more than a few people will lead to problems. So those who have smart business sense will never covet for extra loans.

I think it would be better if someone decided to take a loan for their business. It would be better for them to analyze first whether the business they are running will really develop well and if they think the business will continue to run well after they take out the loan and they will be able to pay off their loans and if they can't pay them off, it would be better for them to postpone the loan they want to take. You are right. Those who have business sense will certainly make decisions about their business and will never borrow beyond their means.

It all depends on how big or small the business we are running and also a thorough risk calculation before deciding because looking for a loan and looking for an investor have very significant differences and also different risks.
Personally, I think we have to be astute in looking at all possible profits and also possible risks and if borrowing will pose a big risk to ourselves and also the business we run, I think looking for investors would be a much better and safer way.

[pinggoki]

I'd much prefer a loan because with loans, I know that there's nothing they can do in my business decisions besides reminding me of the loan repayment or they will do some repossession of some kind, with investors especially if you're a startup, it's going to be a really difficult thing for you because you're making a vision for yourself and you can't really do that vision in your startup business if someone wants you to do this or that they want you to move this direction, it's a really difficult situation that's going to be really annoying for you when you mistake getting into it. Maybe you're a lucky one and you find an investor that's willing to fund your startup without any interference from them but that's not something that you'd see everyday.

[Uhwuchukwu53]

I will not advise for someone starting up a new business to take a loan for it, that is a bad way of starting, instead they can learn to earn and have or build up a start up capital for themself than borrowing, but the option of getting an investor is also not a bad idea in this regards, but when we have gotten one, we must be able to ensure that the terms and conditions involved are what we can comply with, lastly, we must not disappoint our investors by having a failure in what we do, so its a must that the business must be productive.

Yes I concur due to past experiences on loan to start up a new business, it's a wrong move by any business taccum most our society today where inflation is hitting hard and market keeps changing and individual keeps dropping on their demand on consumption, if the product is consumables such loan one may be running into loss as some may hit expiration date because many citizens has cut down their expenditure.

One advantage for get investor is cutting down the risk as it serves as a shared risk in terms of loss but one must keep to term and conditions justdunamisx has said put effort to actualize the dream not to relax since the source is not from him by only targeting it's benefits rather than to make reality unlike when the capital is coming from him.

[SmartCharpa]

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?

I think many people are afraid of third parties simply because they do not want to share their business with anyone. Some people may not have enough money to start a business, but they can decide to take a loan rather than work with an investor to start a business. We must understand that getting a loan from a bank is very risky because if you do not repay the loan on the repayment date, the bank will not extend the repayment date, and even if they do, they will still need additional profits in return. If the business fails, the bank is unconcerned about your losses, you will return their money or seize your property. Another advantage of working with an investor is that he may bring new ideas that will help the business grow. A bank cannot advise how to build your business because they are also in business, which is to give people loans to start their business and repay them with interest, and an investor will never request interest unless his share with the company.

[justdimin]

People who take loans to do business, most of the time spend extra money by borrowing extra money. They sometimes sell business goods to pay off the loan. We should borrow as much money as we need to do business.  Borrowing more than a few people will lead to problems. So those who have smart business sense will never covet for extra loans.

I think it would be better if someone decided to take a loan for their business. It would be better for them to analyze first whether the business they are running will really develop well and if they think the business will continue to run well after they take out the loan and they will be able to pay off their loans and if they can't pay them off, it would be better for them to postpone the loan they want to take. You are right. Those who have business sense will certainly make decisions about their business and will never borrow beyond their means.

This is true in the sense that if you do not want to share ownership of your company then you would be doing a justice to them. I mean it's obvious that whenever someone gives control of their company then they are going to regret it when it fails, because they could have done better job. However, there are few situations like "wework" where the person sells parts of their company to investors and grow, and then sell the last part and be rich while the company goes under.

I think loans are quite good, it would make it possible for them to grow and keep growing, they are called "line of credit" meaning that they take whatever they need, whenever they need it, instead of getting a loan lump sum, which is why I think line of credits are great.