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;
Loans require sudden repayment structure, that's the biggest trouble. If there was an option of "take the loan now, start paying a year later" then I would say that it would be better to keep 100% of your company.
Plus, if we could just take the loan on the companies name, meaning that if we fail to pay then the company bankrupts, then that would be fine too because it would mean that the business did not work, but when we are talking about a new one, you won't get a loan under the business name, you take it personally which means even if the business fails, you still have to pay it. That's why I believe that we are going to end up with loan not being the best option, but to be fair you can't find an investor that easily neither.
Banks would really be that giving out those terms on which they would really be at advantage which of course you would really be needing to pay up into those specific due dates. At first it would really be totally be explained on whats the payment structure. If you do find this to be a trouble then it would really be a take it or leave it kind of condition but honestly there's nothing that you could really be able to avoid
because no matter what the terms would be then you would really be needing to repay those loans in such time. This is why if you would really be deciding on taking up a loan on building up a business start up
then be sure that your company or business would really be that profitable or something that sustaining but since it would really be on its start up then it would really be hard to tell whether it would really be successful or not.
One of the biggest challenge is that on how you would really be that making that business to be successful. This is why every decisions would be made will really be that
acting to be a gamble or huge risks but of course if ever we do tend to have that kind of climbing up to success then we would be needing to try.