Alternative against taking business loan

[Ridorz]

You are right, and you made a point of your words. Taking a loan from bank to start a business is not advisable at all. The best way to raise capital for establishment of business is to be saving money, if you are not able to save money, then you can look for a business partner.

 

[singlej007]

Your suggestion on alternative of taking a business loan are quite good but I always say this, is better you save, work for sometime and save your money, then start the business on your own. if you want a partner let him bring his or her own money for both of you to start the business.

 

[Ifective]

Yes. One can start a business without getting a loan. Even if one do not have savings large enough to start the business, having a partner that contributes financialy to the business is not a bad idea. The partner might be a dormant one and the only job he will be doing is to fund the business while he gets his returns as agreed by both of you.
There are also some businesses that you use the money from customers as capital to start the business

 

[harryper]

Finding investors who will become shareholders of the business is better than taking loan where you would be asked to provide a collateral. Investors can be flexible if the business is struggling for a long time, whereas loan sharks can decide to take your asset or property.

 

[Briangsam]

I like the idea of partnering with someone or even the family and friends donations suggestions. But I don't think taking up loans is such a bad idea. It all depends on the interest rate. If it is a single digit interest rate, it is not too bad.

Post automatically merged: Feb 3, 2021

I like the idea of partnering with someone or even the family and friends donations suggestions. But I don't think taking up loans is such a bad idea. It all depends on the interest rate. If it is a single digit interest rate, it is not too bad.

 

[Oyeleye42]

Alternative financing for your small business? ... They are also easier to apply for and take less time to be funded. ... you're not sure which is right for your needs, check out our article on equipment loans vs. leases.

 

[Ebensco]

Alternative Sources of finance for business are equity, debt, debentures, retained earnings, working letter of credit, euro issue, venture funding etc. These sources of funds are used in different situations. They are classified based on time period, ownership and control, and their source of generation.

 

[Sotherefore]

Do not allowed impatient to make You To go and get the loan and start up a business ,if you cannot wait to rest a capital to start up a good business I do not see the need for you to start up that business because naturally you are not deserved have a business at that point.

 

[Eyiteepraise]

There are lots of better alternatives to taking business loans. A business loan at times might be very risky and also affect the business growth due to the pressure of repayment. It is better to seek for financial assistance or start the business with your own little finances

 

[Nabeel119]

Alternative financing is a means of obtaining capital outside of the traditional banking system. Most, if not all, alternative financing options are available online, without the applicant ever having to step foot in a bank. Online loan marketplaces, crowdfunding platforms, third-party payment providers.

 

[Khezo]

Well I don't believe in taking loans. To me taking loans is a very bad idea. Don't ever involve your self in it. Instead go borrow money for friends and family which would be better be cause you have more time to pay up and it won't affect your business

Post automatically merged: Feb 4, 2021

Well I don't believe in taking loans. To me taking loans is a very bad idea. Don't ever involve your self in it. Instead go borrow money for friends and family which would be better be cause you have more time to pay up and it won't affect your business

 

[GIFTMICHAEL]

You are very right in this research.
I agree with you there are alternative against taking loan.
I understand that there are so many people who has the money but no business idea yes they exist, what we need to do is to look for such ones.

 

[Patrik]

I can tell you this alternative but it's not really the best thing you can do, you can go into a partnership, it's true that issues can happen at any time, but still better than any other stressing loan you can get

 

[Ibrahim]

As for me yes taking business loan is not a bad idea but I can never do it because the loan is really killing when returning it I mean the rate of the interest they collecting and also nothing will be left for you your self to benefit

 

[Thosynho]

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.

I love this post it's indeed informative and educative as well. Of a truth, instead of obtaining loan from banks, you can actually partner with some people who have money.
There are some rich people whom you could walk up to and explain your business idea which will be willing to partner with you in as much your idea is viable and great.

 

[Diamond07]

Taking business loans for startups isn't an advisable thing to do. you can make money from personal savings and investment, You can either meet family and friends for support or take business grants

 

[Smithkid]

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.

 

[Kelvin7656]

When getting a loan from the bank is not an option, small businesses should consider working with alternative lenders, such as those that offer accounts receivable financing (also known as invoice financing or factoring). ... Furthermore, small businesses can benefit from financing their invoices versus getting a loan.

 

[Prettyjanie]

The best alternative to get a business loan for me, is by savings. However, when I'm unable to raise the needed capital for my business, I'll seek for assistance from family and friends. Getting a loan should be the last option do to the high interest rate.

 

[Hamza1999]

For a business loan, business assets such as equipment, vehicles, buildings, and inventory can be used as collateral. Accounts receivables can also be used as collateral. Any business asset that has value and can be sold by the lender to pay off the loan if necessary can be considered collateral.