Holicent
VIP Contributor
There are a number of sources of business finance, from high-quality personal loans to low-interest group loans. But the most important source of financing for small businesses is usually bank loans.
For most small business owners, bank loans are the best option for securing capital. Reasons include:
Bank loans tend to be cheaper than other forms of equity financing because they don't require an investment in start-up costs such as premises or machinery.
Most banks offer an interest rate that is often lower than what can be obtained by selling shares on the stock market or borrowing from venture capital firms.
The interest rate on a bank loan is fixed, while the interest rate on equity shares can vary according to market conditions. However, the country you live can also impact this process greatly, like in a case where such country's economy is down or probably the government's regulations and policies is suffocating, this can have more of a negative effect on getting a loan in the bank.
For most small business owners, bank loans are the best option for securing capital. Reasons include:
Bank loans tend to be cheaper than other forms of equity financing because they don't require an investment in start-up costs such as premises or machinery.
Most banks offer an interest rate that is often lower than what can be obtained by selling shares on the stock market or borrowing from venture capital firms.
The interest rate on a bank loan is fixed, while the interest rate on equity shares can vary according to market conditions. However, the country you live can also impact this process greatly, like in a case where such country's economy is down or probably the government's regulations and policies is suffocating, this can have more of a negative effect on getting a loan in the bank.