Post
Topic
Board Economics
Re: Would you prefer getting a loan for a startup or getting an investor?
by
Antotena
on 31/05/2024, 20:21:58 UTC
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?

My conclusions will depend on the terms and conditions that comes with the opportunity given. There are some countries that are really considerable with the interest rate that are granted for loans. In develop countries where government doesn't joke with MSMes, they make sure that the interest are small and they are given for long term so the business can expand and have enough money to pay back but in some countries where interest rate are high, I wouldn't go for loan, you will die making nothing even though the business succeed as you will spend the rest of your life paying back loan you took from the beginning.

If loan is not favorable, my best shot is Venture capitals, give them some equity percentage on the business, if my idea on the business is good, their input will help not just only me but the business and it will help it grow and also make some connections for expansion. Venture capitals are rally helpful if they are available and the share is favorable, not the one they will want to take 50% of the business because some of them are wicked.