Alternative against taking business loan

[Justin]

If you do not want to take a loan to start your business, you need to sell you 50 percent ownership to another person and use that money to fund your business. This is the best option

 

[Kunkun]

Taking out loans for business is a common way to raise capital but that isn't the only way, another way is to get sponsorships and donations which are better than loans especially from banks

 

[Snazzy001]

To me I think the only alternative against taking a business loan is getting a grant from somewhere either a government organisation or a philanthropist, and there is no other alternative that his way show

 

[Psalmseen]

Taking loans is very risky in a business. You never can tell the outcome of the business. Rather than going for loan, you can raise a partnership business whereby you pool resources together

 

[Richard92]

But that will take a lot of time. I am not saying that you shouldn't do, but it will eat up a lot of time to first settle a small business then again reinvest to expand it.

The only alternative of not taking a business loan is to get money on phone from friends and family also get money from general contribution or from your personal service.

 

[Psalmseen]

I don't support taking business loans to get a business started because of the risk that's involved. Instead of obtaining a business loan, you can form a partnership business with like minds

 

[Setho]

There are some alternatives that you can take against taking a business Loan such as crowd funding to start the business or going into an understanding partnership.

 

[Niftyyem]

You can also source for funds from family and friends. The loans you will be taking from them should most likely be interest free.

 

[Setfragil]

You can also source for funds from family and friends. The loans you will be taking from them should most likely be interest free.

You are totally correct. Taking a loan from family and friends is the mist easiest way to finance or raise the needed capital to establish a business.

 

[gammarays]

There can be alternatives for taking bank loans when the sum involved is small. You can look to savings or donations but when the sum required is huge,I don't think there are better alternatives.

 

[tyrim88]

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.

I had an experience when i approach a bank to secure a soft loan,the loan is not just a major type of loan,but something small to fund my business,the criteria was that it was not a salary account,and so it cannont be granted,because it comes without collatoral.

 

[Shigobad2020]

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.

I am supporting you on the motion that taking a loan always have a negative in a new buinsess in which I am a living witness , i prefer seeking for Grant or borrowing from family and friends without an increament.

 

[Jlife]

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.

I do not like loan even at the early stage of my life , it is something that can put you in a risky situation , I always like to work for the money I need to start up my business on my own and if possible I partner it with people if I do not have enough.

 

[Setho]

I think it is understandable that many people don't want to take business loans so you should consider engaging in a partnership business or reaching out to friends and relatives for funding.

 

[Alexandoy]

If you do not want to take a loan to start your business, you need to sell you 50 percent ownership to another person and use that money to fund your business. This is the best option

I don't think selling half of the ownership is a good idea. It is like giving away your control of the business. Maybe you can scout for resources to sell like expensive jewelry or art pieces in your home that can fetch a good price. An old car can also be sold for added capital.

 

[Ralphjoe]

I do not like loan even at the early stage of my life , it is something that can put you in a risky situation , I always like to work for the money I need to start up my business on my own and if possible I partner it with people if I do not have enough.

But you will also agree with me that it will be very difficult for one to be able to work for the money that you will use in starting up a business except the business that you want to start up it's a very small business that is when you can be able to work and gather the required for me to start up that business but if it's a big business then you will definitely need to take loans.

 

[kayode10]

Approaching angel investors is the next available option after business loan. You just need a proper business plan and a good presentation to convince angel investors to invest in your business. Angel investors are not always after interest.

 

[Jlife]

But you will also agree with me that it will be very difficult for one to be able to work for the money that you will use in starting up a business except the business that you want to start up it's a very small business that is when you can be able to work and gather the required for me to start up that business but if it's a big business then you will definitely need to take loans.

If I am a medical doctor i think I'll get the money to start up my dream business, There are different works depending on what people are doing that can be profitable for people to raise money and start a business.

 

[akinlolu99]

Business is something before gets into it you need to be mentally physically and emotionally stable because decisions will be made and due to that you need to be able to know the right thing to do, i as much as i advise against the loan to start a business one needs to also be read to makes sacrifices e.g like saving if the person is really seriously serious about the business.

 

[Blessingedidiong]

The alternative of taking a loan most times have a negative effect on a business. Instead of taking a loan,one could look for a partner to join the business. You could also save up some money or ask for assistance from family and friends.