Borrowing Money for Business

[raaman]

You have to prepare a good business plan when you intend to approach your family and friends to raise capital for your business. You should also develop a complete business plan, which should outline your business idea, market study, financial plans, and the plan to growth. A good business plan will show the possibility of your project and instill confidence in prospective investors.

Find out the amount of capital money needed to start the proposed new business venture. You have to calculate the amount of capital you require carefully to get your business start off smoothly and achieve precise landmarks. Be open about how the funds collected will be used and offer a genuine and acceptable timeline for generating returns.

 

[SHAHID123]

Here every individual could have their own opinion, but in my opinion we need to start business by our own capital. Borrowed money always causes problems, if not any prominent problem then at least we remain in stress as we are bound to return it. Furthermore the person with whom we borrowed this loan may ask anytime his money. I started my small general store business without support of any relative or friend, I didn't borrowed any loan from anywhere so I was confident enough to run my business smoothly without any fear. After sometime I realized it's importance when business started growing and I started getting profit which all in all was coming in my pocket.

 

[Mika]

If you are planning a small business that does not need huge capital, you might be able to start with your own funds or borrow from friends and family. One of the best things about borrowing from friends and family is you might not have to give interest on the principal amount and you might only have to pay the principal amount. However, if you are planning big, you might have to use financial services like banks, finance companies, investment companies to borrow money and you will have to pay a lot of interest