Alternative against taking business loan

[Doradorwa]

If you are keen to start a business but have no starting capital, then there are some alternative options rather than taking out a business loan.
Firstly, have you considered starting off with a business that doesn’t require much capital that you could perhaps self fund? This will allow you to earn some money and then invest your earnings into the larger idea. Always my preferred option!
Secondly, think about taking on a business partner. There will be people out there who want to partner into a business but don’t have experience in business, but do have capital. Discuss an equal partnership. You can often find these people on message boards and forums. They will probably even bring their own set of skills to the table!
Lastly, if you are adamant on taking out a business loan, then consider purchasing an established business.
There are many sites where people list established businesses for sale, and if you can find one in the area you’re looking to work in, then this may be an option for you, because with an established business, you will be able to ask for accounts and be sure that the loan repayments would be covered before taking out the loan.

 

[EMMANUEL]

Banks consider healthy and well-established cash flow as one of the key indicators in the ability to pay off existing debts. Business owners may have difficulty getting a loan from a bank if the company’s operating costs outweigh the money that is entering the business.

 

[Ayokex]

There are better alternative than taking a loan to start a business if you can't raise the business capital by yourself. You may consider having a business partner. This is a good way of sourcing for business capital order than starting on credit. There are some people called angel investors. These are usually wealthy personalities who have what it takes to finance any business but do not have the business idea. They are always ready to finance as long as you have a very good business plan.

 

[Eodine]

Since taking a business loan can have a negative effect on the future of a business then other options such as grants frim friends and family, government grants, or getting a partner with the ready funds.

 

[Trojan8]

I don't think taking a business loan is such a bad idea. If you have a realistic view that the business will boom and the loan will help then you should. I think we are all doctrine to hate the idea of loans and this should stop. Even wealthy men take loans once in a while to help their business move forward.

 

[sam386150]

The alternative of taking a loan is very risky,I prefer to attach yourself with family and friends form a group or look for a business partner to enable you use a little capital at hand and combined with your partners they run your business successfully instead to go and take loan.

 

[Trexxxy]

Yeah these are nice suggestions, i especially like the suggestion of taking on a partner, I think it reduces workload and financial stress. But we have to remember that not everyone can source for fund. I honestly don't think taking a loan is a bad idea.g

 

[Neta Sam(Samuel Odunlade)]

There are alternatives if you know how to put your onions in the right food for a food spices. Depending on the kind of business you want to do, it will determine the capital you want to get inform of loan. You can sell your idea to people who can invest in that business and you will give them there commission instead of taking loan, you let someone buy into to the business, bur mind you tour business must be viable and attractive.

 

[Abibatabosede]

There are a lot of alternatives to loan in starting a business. The first is to try to work and get some income to save while you are nurturing the dream of starting your own business. Another one is to seek family or relations help to raise money.......

 

[btaliat]

Taking business loan is very risky. I always advised people that want to go into business to always save or invest first before starting a business. The worst is to run to their families and government.

 

[Chumzy]

A good alternative would be trying to get your profit put back into the business. One can decide to plough back profit and grow the business from scratch to the top. Another will be looking for government grants and supports or even from family.

 

[Ralphjoe]

Brilliant article, I couldn't agree more, Business loan taking is not that advisable, if there are alternative, then one should go for the alternatives like starting up your business small, joining up with credit and thrift society, Forming partnership and getting investors online.

 

[Nurudeen]

The best alternatives to getting loan is to apply for government grant. A lot of people have established their business with the grant they have gotten from government and the beauty part of this is that the government grant is not repaid that is the government will use it to empower people

 

[Richard92]

The only alternative of not taking a business loans is managing your personal savings to start up the business or asking your parents, friends and families for assistance when you are about to start up a business.

 

[MarieArie]

Small businesses have been hurt during the Great Recession and are now being shut out of getting a bank loan. They have lost customers and now have reduced sales. They have had to lay off employees because there isn't enough for them to do or enough to pay them. They have lost valuable supply lines. Most of all, they have lost their creditworthiness or so it seems and can't get business credit or business loans.

 

[Jlife]

if you do not want to get a loan to start up a business or whatever you want to do with it you can use your land or any property that is available and sell it and you'll get the amount of money you need to start up what you want to do with the money as simple as that

 

[jimmann247]

You have spoken well on the alternative of taking a business loan. I think that of starting a business with low capital will be a better one and looking for a partner to start a business with, since most business require a good capital to start, thanks for this idea.

 

[Erik4150]

There are several ways to acquire capital for your business. Taking a loan should be the last resort after other options have failed. It would be better to save money rather than taking loans. If you can't save, you should take loans from family and friends and never from a bank.

 

[Mandypaul]

I don't see any alternative in this one because if there is no other alternative for taking taking up a loan to start up a business, if you don't have money to start up the business you go ahead but if you do not have money you leave the business without doing it that is the only one I know.

 

[Tariq Shehzad]

Banks think about solid and grounded income as one of the vital pointers in the capacity to take care of existing obligations. Entrepreneurs may experience issues getting an advance from a bank if the organization's working expenses exceed the cash that is entering the business.