Self funding vs taking a loan

[eLdavis]

When it comes to business startups, one common ways people usually use in generating funds for the business startup is usually either though self funding or taking of loans. Most people tend to go for loans as it is a lot faster and easier. Personally i would go for self funding cause in this case the risk involved is lesser and it prevent me from working under unnecessary pressure over how to pay back the loan. Which do you prefer and why?

 

[Starmix]

When it comes to business startups, one common ways people usually use in generating funds for the business startup is usually either though self funding or taking of loans. Most people tend to go for loans as it is a lot faster and easier. Personally i would go for self funding cause in this case the risk involved is lesser and it prevent me from working under unnecessary pressure over how to pay back the loan. Which do you prefer and why?

I also prefer self-funding. It is not good to apply for a bank loan because of the interest surcharges in case of failure to pay in a single month. In my case, I used my savings in my small business.

 

[Augusta]

I would go for self funding for a business than taking a loan. Loans come with interest and sometimes it can be very high and steal the profit of the business. So it would be better to source for personal funds.

 

[mrki444]

I only take loan if I buy apartment or house. For everything else I will try self funding. Later invest some time then take loan and pay fee. Even sometimes people say: time will past fast and you will get old.

 

[Carson20t]

Based on my experience i would say going for personal funding is what has proven to work for me and then seek external funding when i just want expansion and quality improvement on the product that my business is offering.

 

[Starmix]

Based on my experience i would say going for personal funding is what has proven to work for me and then seek external funding when i just want expansion and quality improvement on the product that my business is offering.

At least self - funding was proven worth of your admiration as per experience you have had. It's also good to have an external funding if the allocation requires bigger capital. Let's be innovative by the way.

 

[Carson20t]

At least self - funding was proven worth of your admiration as per experience you have had. It's also good to have an external funding if the allocation requires bigger capital. Let's be innovative by the way.

Yes self funding is primary according to my preferance and experiencethat ,most start-ups lack the capital for them to uptrend or upscale in their business ventures hence the resolve to seek external funding.Indeed we just need to be innovative and profitable in our ventures individually or in partnerships.

 

[Passionate-writer]

I also prefer self-funding. It is not good to apply for a bank loan because of the interest surcharges in case of failure to pay in a single month. In my case, I used my savings in my small business.

I have never applied for loan in my entire life and the chances are that I will never do it in the future. I hate paying interest and I also hate earning it as well. This is one of the main reasons why I will never ever apply for loans. Having said that, I also like personal finance. It gives me a lots of control.

 

[Kirubel]

In my country most of the times new business owners take a loan from a banks and from the government organizations to fund their business, and also the government motivate for those who are starting their own business than seeking employment.

 

[Starmix]

I have never applied for loan in my entire life and the chances are that I will never do it in the future. I hate paying interest and I also hate earning it as well. This is one of the main reasons why I will never ever apply for loans. Having said that, I also like personal finance. It gives me a lots of control.

When I was a new employee, I tried to experience many things like a bank loan, a bank co-maker, loan in a private agency, and purchasing appliances through installment. . It was so an exciting experience and I was able to pay all in less than 12 months one at a time loaning.

 

[freelancermaria]

I don't have an offline business yet, but if I ever do, I plan to self-fund. Loans are not a good option for start-ups. As we all know, starting a business has several risks. What if your business doesn't succeed? How will you pay your loans? You're lucky if you have enough money to pay for them.