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

[Fredomago]

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.

There are both risk and advantages in terms of that both side, more likely the point is how you trust your idea and how will you deal in selling it with the investors, or, how good you think the potentials and work with barrowing or loaning the finances thru banking, there's always fessibility studies that you need to conduct before you decide if which path you'll want to resort your finances, I like that idea about investors who can shares idea on how you can improve your business, unlike with banks where the intention is to gain profits alone, but with investors since they also risking their money, there's chance that they will also put some fresh ideas that will let you to link or to adopt with good adjsutments for the betterment of the business.

[tygeade]

There are both risk and advantages in terms of that both side, more likely the point is how you trust your idea and how will you deal in selling it with the investors, or, how good you think the potentials and work with barrowing or loaning the finances thru banking, there's always fessibility studies that you need to conduct before you decide if which path you'll want to resort your finances, I like that idea about investors who can shares idea on how you can improve your business, unlike with banks where the intention is to gain profits alone, but with investors since they also risking their money, there's chance that they will also put some fresh ideas that will let you to link or to adopt with good adjsutments for the betterment of the business.

The bigger risk is at the investor. The person who is working on making their "dream" come true, or even just making a business that they want to try, isn't spending anything but their time, that's it, their time, and they are even getting paid for it, by the investors basically. Investor on the other hand is putting up their money, and that is the risk we are talking about.

I have seen people get thousands of dollars for basically doing nothing and promising everything in the crypto world, go look at launchpads and the highest funded ones, you will see that most have nothing at all but promise to be better in the future. That is a risk by investors not risk by the devs of those projects because they are risking nothing at all.

[sekalitas]

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'll choose to get an investor because I don't yet have experience running a profitable business with positive cash flow. By finding an investor, I must prepare a pitch deck, which forces me to continuously improve and verify my ideas. I also learn how to convince investors. This is a very good experience. So, besides getting a cash injection , I can learn more about the potential of my ideas because I need to convince investors by answering their concerns.

[btc78]

I'll choose to get an investor because I don't yet have experience running a profitable business with positive cash flow. By finding an investor, I must prepare a pitch deck, which forces me to continuously improve and verify my ideas. I also learn how to convince investors. This is a very good experience. So, besides getting a cash injection , I can learn more about the potential of my ideas because I need to convince investors by answering their concerns.

That is actually quite smart but how hard could it be to try and learn things by yourself first before trying to bring in other people to meddle with your own business? Consultants are okay but once you start bringing people in that could alter the direction of your business, it might become too complicated.

There is no shame in being a beginner and learning how things work first and maybe even making a few mistakes. Seems better than letting the decisions be ran by other people who might even do some work before your back.

[mirakal]

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

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

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

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

Investors can only be hard to find if they think your business idea is not valuable enough and not worthy to risk of their funds. As much as your own idea is priceless, the money they are going to risk is even more valuable than what you think. So it’s always the concern of the investors first that you are going to prioritize rather than putting your idea at its highest value. If you can easily adjust to that, you will end up looking for investors easily as long as you go directly asking to its potential investors, not on the fake ones.

[Baki202]

I'll choose to get an investor because I don't yet have experience running a profitable business with positive cash flow. By finding an investor, I must prepare a pitch deck, which forces me to continuously improve and verify my ideas. I also learn how to convince investors. This is a very good experience. So, besides getting a cash injection , I can learn more about the potential of my ideas because I need to convince investors by answering their concerns.

And another thing is that you can start from gathering information about the investment, and talk to people that are in similar businesses, because business you need information to be able to operate. And start first won’t be easy since their is no experience, the challenges you face will be were you will start getting your own experience from. Because even with your research what you experience will be the teacher you need. And having the idea and an investor at the same time just makes everything very easy. That is exactly were the work is to convince investors to invest in your idea, if the business is from the scratch then you need a lot to convince them to invest, they will be scared and also be in a state of confusion either to risk it or not but majority of this investment have experience and they know a good idea when they see one so they won’t just spend their money on ideas that won’t fetch them money. So if you are going with investors then you need to do your research well and have a good convincing spirit.

[oktana]

It depends on the contract. If you can find an investor that isn’t greedy, then that’s a great option because investors are usually better than loans. When you have an investor, if anything goes wrong, it’s his money that goes, you’re not held responsible as he knew the risk. If you take a loan, they don’t care what you did to the money, you have to pay it back. But there are some contracts with investors that can make you consider a loan that you would an investor.

[Renampun]

I often watch YouTube videos that discuss this, the majority of the discussions explain in detail the advantages and disadvantages of both and from watching videos on YouTube that discuss this, I see that waiting for investors is much better than making loans to banks, especially when start-ups have There is a big risk of loss, so borrowing money from the bank to start a start-up is the wrong thing to do.

[Winterfrost]

I often watch YouTube videos that discuss this, the majority of the discussions explain in detail the advantages and disadvantages of both and from watching videos on YouTube that discuss this, I see that waiting for investors is much better than making loans to banks, especially when start-ups have There is a big risk of loss, so borrowing money from the bank to start a start-up is the wrong thing to do.

You are right, anything associated with loan conveys an interest fee attached to the loaned amount and In some cases there is a very big interest rate on the loaned amount which the borrower might find it difficult to easily meet up the demand for the repayment schedule as agreed by both parties, pushing the borrower to a very difficult situation where he/she would have to work beyond measures just to meet up. Investors are the best measures to grow a firm or business, only percentage of profit to be shared will be agreed on giving the business owner enough space to work on the business easier and be more efficient.

[Fredomago]

There are both risk and advantages in terms of that both side, more likely the point is how you trust your idea and how will you deal in selling it with the investors, or, how good you think the potentials and work with barrowing or loaning the finances thru banking, there's always fessibility studies that you need to conduct before you decide if which path you'll want to resort your finances, I like that idea about investors who can shares idea on how you can improve your business, unlike with banks where the intention is to gain profits alone, but with investors since they also risking their money, there's chance that they will also put some fresh ideas that will let you to link or to adopt with good adjsutments for the betterment of the business.

The bigger risk is at the investor. The person who is working on making their "dream" come true, or even just making a business that they want to try, isn't spending anything but their time, that's it, their time, and they are even getting paid for it, by the investors basically. Investor on the other hand is putting up their money, and that is the risk we are talking about.

I have seen people get thousands of dollars for basically doing nothing and promising everything in the crypto world, go look at launchpads and the highest funded ones, you will see that most have nothing at all but promise to be better in the future. That is a risk by investors not risk by the devs of those projects because they are risking nothing at all.

And it's true as the chance that developers will runaway with the money is possible to happen, the risk for those investors to lose after entrusting their money to those people behind the project can take place, same with what you mentioned,  it's easy for those developers to propose and seek for investors trust but the outcome is not assure that the investors will surely gain,  though if in case the project succeed,  then that risk will be converted to a decent amount of profits.

[stomachgrowls]

There are both risk and advantages in terms of that both side, more likely the point is how you trust your idea and how will you deal in selling it with the investors, or, how good you think the potentials and work with barrowing or loaning the finances thru banking, there's always fessibility studies that you need to conduct before you decide if which path you'll want to resort your finances, I like that idea about investors who can shares idea on how you can improve your business, unlike with banks where the intention is to gain profits alone, but with investors since they also risking their money, there's chance that they will also put some fresh ideas that will let you to link or to adopt with good adjsutments for the betterment of the business.

The bigger risk is at the investor. The person who is working on making their "dream" come true, or even just making a business that they want to try, isn't spending anything but their time, that's it, their time, and they are even getting paid for it, by the investors basically. Investor on the other hand is putting up their money, and that is the risk we are talking about.

I have seen people get thousands of dollars for basically doing nothing and promising everything in the crypto world, go look at launchpads and the highest funded ones, you will see that most have nothing at all but promise to be better in the future. That is a risk by investors not risk by the devs of those projects because they are risking nothing at all.

And it's true as the chance that developers will runaway with the money is possible to happen, the risk for those investors to lose after entrusting their money to those people behind the project can take place, same with what you mentioned,  it's easy for those developers to propose and seek for investors trust but the outcome is not assure that the investors will surely gain,  though if in case the project succeed,  then that risk will be converted to a decent amount of profits.

Thats why there were no instances that there are some funding or having those kind of corporation in between building a new project on which we know that scams and frauds could really happen into these kind of transactions and this is why investors cant really be able to trust up specially online on which that devs arent that Doxxed or know. So there would really be no assurance that you would really be able to have as an investor. So it would really be just that common sense that you wouldnt really be that making yourself having that security then it would be common sense that you cant really just that trust them up. So it would
really be better that you should really know on what you are dealing with.

If you are someone who do tend to make a business or investment then its impossible that you could get some investor online. So the nearest option that
you could really be having is on that you should really be taking up some loan neither on your relatives or loved ones or your last resort would really be on banks or
financing. So it would really be just that on your own choice.

[Natalim]

It depends on the contract. If you can find an investor that isn’t greedy, then that’s a great option because investors are usually better than loans. When you have an investor, if anything goes wrong, it’s his money that goes, you’re not held responsible as he knew the risk. If you take a loan, they don’t care what you did to the money, you have to pay it back. But there are some contracts with investors that can make you consider a loan that you would an investor.

Of course having a contract is a must.You should never do any business with anybody if there is no possible contract, that way everything will put into legality with the presence of a licensed attorney.

Now investors are actually greedy since it’s their money that are being risked in the first place. However, your responsibility here is to act as a business partner, so that you can ensure that everything in your business idea is followed so that the success will be certain, unless if the investor itself will find his own way on achieving the business’ success.

[Cookdata]

I'll choose to get an investor because I don't yet have experience running a profitable business with positive cash flow. By finding an investor, I must prepare a pitch deck, which forces me to continuously improve and verify my ideas. I also learn how to convince investors. This is a very good experience. So, besides getting a cash injection , I can learn more about the potential of my ideas because I need to convince investors by answering their concerns.

I have not seen where loan is giving in a favorable condition, but if you are getting a loan from someone who is God fearing with interest rate and conditions looks cool, you will enjoy loan as well but as I said, the loan interest rate and other conditions has to be favorable. Have you look at it in a way that you have a place you will have interest rate less than 10% with long term payback, you will run that business with rest of mind and wouldn't mind the zigzag movement that may come later, your aim is to succeed.

Don't forget that investors are mean people, they might agree to give you money but it comes with a cost, they may ask you to give them some of the business equity before they can loan you money whether a cash flow or fixed cash. You will be the one to run the business and you must succeed but after everything, they take their own percentage at the end of the day. Nothing is easy when it comes to running a business buddy.

[oktana]

It depends on the contract. If you can find an investor that isn’t greedy, then that’s a great option because investors are usually better than loans. When you have an investor, if anything goes wrong, it’s his money that goes, you’re not held responsible as he knew the risk. If you take a loan, they don’t care what you did to the money, you have to pay it back. But there are some contracts with investors that can make you consider a loan that you would an investor.

Of course having a contract is a must.You should never do any business with anybody if there is no possible contract, that way everything will put into legality with the presence of a licensed attorney.

Now investors are actually greedy since it’s their money that are being risked in the first place. However, your responsibility here is to act as a business partner, so that you can ensure that everything in your business idea is followed so that the success will be certain, unless if the investor itself will find his own way on achieving the business’ success.

Indeed, that’s all it cost when you have an investor, that’s the major point with which we can say that investors are better than loan because all you have to apply is as much as your intellectual property of the said business, if it fails, you just have to prove that you did your best. But it would be great if you could make it work out because it’ll leave a track record that you’ve done something with an investor and it went well. Just in case you have future ideas and would need investors again. It is something that would boost their confidence.

[STT]

This would be the question of equity or debt, I think startups need all the help they can get so investor and equity.   Its also true when you have another investor you are selling part of the business so be comfortable with that and they may not always agree with your strategy while spending the businesses money.

A great many disagreements can occur in investments, I would still prefer someone involved over a bank over my head circling me like a vulture.   Debt also ranks over equity, you have alot less leeway on a debt owed.

[wiss19]

I'll choose to get an investor because I don't yet have experience running a profitable business with positive cash flow. By finding an investor, I must prepare a pitch deck, which forces me to continuously improve and verify my ideas. I also learn how to convince investors. This is a very good experience. So, besides getting a cash injection , I can learn more about the potential of my ideas because I need to convince investors by answering their concerns.

That is actually quite smart but how hard could it be to try and learn things by yourself first before trying to bring in other people to meddle with your own business? Consultants are okay but once you start bringing people in that could alter the direction of your business, it might become too complicated.

There is no shame in being a beginner and learning how things work first and maybe even making a few mistakes. Seems better than letting the decisions be ran by other people who might even do some work before your back.

Having an investor is not like doing a partnership. You may not understand, but if you borrow money from someone or someone else invests money in your business, then you set a profit limit in which you have to give the profit to your investor. Yes, if you have a partner in your profit, then he can interfere in your business and you can say that your business is in the hands of someone else. But if you have good investors, you only have to give benefits to your investors and not involve them in your business.

I think it is much better than borrowing to find good investors who keep giving them a fixed amount because debt is something that once a person takes, he can never get out of debt. If you borrow from someone and he stipulates that you have to pay interest on it, it can be more dangerous for you. I don't think his business can be more successful than if you have a good investor and you decide that they will have a profit in your business, then you give them that much money every month.

[slapper]

~snip~

Having an investor is not like doing a partnership. You may not understand, but if you borrow money from someone or someone else invests money in your business, then you set a profit limit in which you have to give the profit to your investor. Yes, if you have a partner in your profit, then he can interfere in your business and you can say that your business is in the hands of someone else. But if you have good investors, you only have to give benefits to your investors and not involve them in your business.

I think it is much better than borrowing to find good investors who keep giving them a fixed amount because debt is something that once a person takes, he can never get out of debt. If you borrow from someone and he stipulates that you have to pay interest on it, it can be more dangerous for you. I don't think his business can be more successful than if you have a good investor and you decide that they will have a profit in your business, then you give them that much money every month.

You're looking at this investor against debt situation as if it were some sort of cage match. Perhaps, though, debt isn't the devil you believe. convertible notes? It's like you perform as expected; it becomes equity. Use it wisely, debt can be the fuel for the rocket ship

Now, investors? Indeed, they write checks, but they're not only throwing money at you. They got expectations, man. They are looking for development and profits. That can mess with your headspace, just like any debt deal. Don't fool yourself; think of investor money as equivalent to complete independence. Their influence is there, brother, whether they got a board seat or not

The truth is that every route to money comes with guidelines of their own. Not a free lunch, but you have to choose the game you want to play

[~speedx~]

Rather than starting a business with a loan, it is better to save money and then do business. But not everyone may have such an opportunity and situation. In that case, you can start a business with a loan. But it should be seen how much percent interest will be taken by this lending institution or person.

[milewilda]

I'll choose to get an investor because I don't yet have experience running a profitable business with positive cash flow. By finding an investor, I must prepare a pitch deck, which forces me to continuously improve and verify my ideas. I also learn how to convince investors. This is a very good experience. So, besides getting a cash injection , I can learn more about the potential of my ideas because I need to convince investors by answering their concerns.

That is actually quite smart but how hard could it be to try and learn things by yourself first before trying to bring in other people to meddle with your own business? Consultants are okay but once you start bringing people in that could alter the direction of your business, it might become too complicated.

There is no shame in being a beginner and learning how things work first and maybe even making a few mistakes. Seems better than letting the decisions be ran by other people who might even do some work before your back.

Having an investor is not like doing a partnership. You may not understand, but if you borrow money from someone or someone else invests money in your business, then you set a profit limit in which you have to give the profit to your investor. Yes, if you have a partner in your profit, then he can interfere in your business and you can say that your business is in the hands of someone else. But if you have good investors, you only have to give benefits to your investors and not involve them in your business.

I think it is much better than borrowing to find good investors who keep giving them a fixed amount because debt is something that once a person takes, he can never get out of debt. If you borrow from someone and he stipulates that you have to pay interest on it, it can be more dangerous for you. I don't think his business can be more successful than if you have a good investor and you decide that they will have a profit in your business, then you give them that much money every month.

Some people would really be thinking that being an investor would really be automatically considered out to be that some sort of partnership on which its true somehow on the sense that they are part of the foundation
considering on the amount or financial approach but its true that if you would really be that tending to make up some agreement or really just that simply trying clarify that they arent that your partners but rather they are just purely investors who would really be that getting a percentage in speaking about on the profits that they are making and not really that totally have that kind of rights and control on how business operates or on how they would really be working. There's really indeed a difference in between things on which you would really be needing up to clarify if you wont really be liking any hassle about these kind of stuffs.

Going back into the possibility on getting investors online would really be that tough. Why? trust issues would really be the main issues on this one because
dealing up with things or investment in online world would really be that risky specially if you wont be able to know someone whose really that asking for.

[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?

A loan would probably be the preferred choice, but both of these options come with unique advantages and disadvantages. Loans will sometimes be a tad more expensive and require you to put up your personal belongings, like a house, as collateral - depending on the amount of money you need to raise. If everything goes well with the money, you get to keep the whole business and pay down the debt with hopefully a lot more equity at the end of it. However an investor will often want a large cut of the business but are more willing to take a risk, if you don't have collateral to offer they stand to lose a lot more potentially so it is somewhat fair. They can also give tailored tips and advice because it is in their interests to see their investment flourish.