Partnership vs. Getting a Loan

[Nomad]

if you want additional investment in your business, you can either go into a partnership model and secure funds from someone against equity in your company, or you can go to banks and get a loan. The problem with loan is if your business does not succeed, you will lose a lot of money. However, with partnership you can have someone to share your losses. What do you think?

 

[Kera]

I would rather partner with someone to run the business than taking a loan. When you look at the risk profile, taking a loan is more risky.

 

[Augusta]

Partnership is the way to go if you have a good partner. Loans sometimes come with the demand of a high interest rate

 

[Springtime]

Partnership is preferable but you have to find the right partner who shares your vision of the business.

 

[Kross]

There is no way that I would choose a loan over a partnership. I wouldn't want to lose my peace of mind because of loans.

 

[King Belieal]

The two of them are very dicey. Partnerships of they fail can lead to conflicts and litigations and loans have risks of penalty for non payments. But I think partnerships are a bit less stringent.