Yhubee
Member
To start up a business, the individual is mostly faced with the challenge of getting a capital for his or her business.
For some people, they might prefer to get their capital from their personal savings, but a question comes, will their savings be enough to cover all the expenses?
Well, it may and it may not depending on the nature of their business and if they had planned very well before hand to save enough for this purpose. Also , this source is good as you do not have to pay back the money to anyone since its directly from your savings.
For others, they prefer to borrow money from their friends or their family members which they plan on refunding at a certain time.
Another category of people may choose to get a loan from the bank to start up their business and pay back at a fixed time. Now concerning the loan, the business owner has to make sure he or she pays back on tbe fixed date to avoid issues.
I have thrown this question at some business owners and while some preferred to get their capital from their personal savings , others preferred getting a loan saying their savings were not enough to fund their business.
Which of these sources is preferable ?
For some people, they might prefer to get their capital from their personal savings, but a question comes, will their savings be enough to cover all the expenses?
Well, it may and it may not depending on the nature of their business and if they had planned very well before hand to save enough for this purpose. Also , this source is good as you do not have to pay back the money to anyone since its directly from your savings.
For others, they prefer to borrow money from their friends or their family members which they plan on refunding at a certain time.
Another category of people may choose to get a loan from the bank to start up their business and pay back at a fixed time. Now concerning the loan, the business owner has to make sure he or she pays back on tbe fixed date to avoid issues.
I have thrown this question at some business owners and while some preferred to get their capital from their personal savings , others preferred getting a loan saying their savings were not enough to fund their business.
Which of these sources is preferable ?