The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Taking a loan for my business

Topics relating to managing people and relationships
Status
Not open for further replies.

Darlene L.

Contributor
User Power
Value/Post Ratio
95%
Jan 29, 2016
22
21
38
Metro Manila Philippines
One of the biggest steps we could make when deciding to grow our business is taking that much needed loan.

What is your point if view about this? If I finance my business by taking that loan instead of going for investors, would that be a better decision?

I'm also a loan agent by profession and I connect US businessmen to financers around US and Canada. I could even assist in helping some of the businessmen here in taking that funding that they need as long as they qualify.

I have observed several clients that I've had who took that much needed financial boost and are doing quite well in terms of paying back what they owe. I guess as long as your projections are right, then you wouldn't really have any problem.

I haven't really tried taking a loan myself altbough it is one of the things I am currently considering since having partners are quite complicated.

So which is better? Getting investors or that loan?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Darlene L.

Contributor
User Power
Value/Post Ratio
95%
Jan 29, 2016
22
21
38
Metro Manila Philippines
I need to invest on heavy equipment and hire new designers for my business. Last time I inquired about the idea of getting investors, now I'm thinking about getting that loan myself.

There are many borrowing options for people who needs the money nowadays... I guess there really is a lot to go around.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Alan LT

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
138%
Nov 1, 2014
125
172
South Florida
Remember whatever the outcome of your business, you will have to pay that loan back. You have things like Kickstarter to help you raise your money.

Also, if you do take a loan watch carefully who you take it from. If it's from a friend or family member you can easily ruin the relationship. If it's from the bank, then you better pay that money back.

Hey I'm just an 18 year old kid... Wtf do I know. Don't take my word, go do some research. Good luck [emoji1417]
 

ShaeStyle

New Contributor
Read Fastlane!
User Power
Value/Post Ratio
350%
Feb 4, 2016
4
14
Phoenix, AZ
I’m currently dealing with the same dilemma. I’ve been recently looking into loans to help finance my start up business. I haven’t applied yet but I am very interested.

I’m not sure how to go about finding investors that would invest in a start-up. I’m still researching into that.

I’m very interested in hearing about what you decide to do and why you chose that option?
 

jon.a

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
329%
Sep 29, 2012
4,306
14,175
Near San Diego
I need to invest on heavy equipment and hire new designers for my business. Last time I inquired about the idea of getting investors, now I'm thinking about getting that loan myself.

There are many borrowing options for people who needs the money nowadays... I guess there really is a lot to go around.
Go find the recent 'Profit" episode with the custom lighting company. Marcus touched on equipment purchases.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Jeremy Groover

Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
107%
Nov 26, 2014
72
77
33
Orlando Florida
I have never done either. I currently have a service business that I paid for the start up by saving up and doing the crappy odd jobs that no one wants to do. My start up was less then 5,000 so a loan or an investor was not necessary. In your situation I would look at it like this if I were you.

-Loans- Set amount that needs to be paid back. No matter the amount of money you turn (good or bad) you still pay the same amount.

-Investors (you give away a % of the business)- The more money you make the more money you owe them. The harder you work the more they get paid. I don't know about you but when I start a business, I want to keep as much as possible, even if I couldn't of done the business without them.

I personally would pick a loan over an investor +95% of the time. The only situation I would pick an investor over a loan would be if the start up of this business until the time you start making returns is an unusual amount of time. Meaning you wouldn't even get your feet wet before the bank was knocking at your door looking for your money. The only other time I would pick an investor would be if I did not qualify for the loan.

Some may not agree, but thats the way I stand until I am proven wrong, or I learn another situation.
 

Ninjakid

Platinum Contributor
Speedway Pass
User Power
Value/Post Ratio
217%
Jun 23, 2014
1,936
4,206
Buddy Guy Eh
One of the biggest steps we could make when deciding to grow our business is taking that much needed loan.

What is your point if view about this? If I finance my business by taking that loan instead of going for investors, would that be a better decision?

I'm also a loan agent by profession and I connect US businessmen to financers around US and Canada. I could even assist in helping some of the businessmen here in taking that funding that they need as long as they qualify.

I have observed several clients that I've had who took that much needed financial boost and are doing quite well in terms of paying back what they owe. I guess as long as your projections are right, then you wouldn't really have any problem.

I haven't really tried taking a loan myself altbough it is one of the things I am currently considering since having partners are quite complicated.

So which is better? Getting investors or that loan?

I would not take a loan for starting a business for this reason: The only thing guaranteed with this security is that you will have to pay bank the money. So if something goes wrong with your business, which you must consider the possibility, you will have to pay it back anyways.

The upside: you don't need to split ownership of your company.

I know several people who have started a business on loaned money, that business didn't work out, and they were in a less than desirable financial state because of it.

While investors don't want to lose their money either, they are professional risk managers, and a skilled investor would not risk more than he or she could afford to lose.

On the other hand, there are several successful entrepreneurs that started their first big business on a loan.

Does it work out for the best? Sometimes it does. Sometimes it doesn't. When it doesn't, it's usually painful. For me, I would see a large loan as an foolish risk despite the fact that there may be a good return.

So it's up to you. It might work out well for you. It all depends on if you're willing to take that risk.
 

DaveC

Bronze Contributor
FASTLANE INSIDER
Speedway Pass
User Power
Value/Post Ratio
166%
Oct 15, 2012
160
266
Chicago, IL
Well....I think we need more info here. Is someone offering a 0% loan, no strings attached? Or is it a loan shark? Is Mark Cuban offering to invest, or your fixed income grandma?

I generally avoid debt personally am looking at it for some larger deals, on terms that avoid personal guarantees. I definitely have used investors, but generally with something to add to the business as well (experience, insight, connections, etc....)
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Chris Kelsey

Bronze Contributor
Speedway Pass
User Power
Value/Post Ratio
943%
Jun 5, 2016
40
377
26
San Francisco
I personally wouldn't ever take a loan for my business. I've been offered 1m+ investments for my business currently but I've declined as everything is going very well. With that being said, if I was doing a new startup and someone was willing to put 500k down for 15% in something that I knew was very likely to work (but I didn't feel like putting in my own 500k), then that could be a definite different possibility.
 

MotiveInMotion

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
167%
Mar 14, 2016
109
182
Independent
I would not take a loan for starting a business for this reason: The only thing guaranteed with this security is that you will have to pay bank the money. So if something goes wrong with your business, which you must consider the possibility, you will have to pay it back anyways.

The upside: you don't need to split ownership of your company.

I know several people who have started a business on loaned money, that business didn't work out, and they were in a less than desirable financial state because of it.

While investors don't want to lose their money either, they are professional risk managers, and a skilled investor would not risk more than he or she could afford to lose.

On the other hand, there are several successful entrepreneurs that started their first big business on a loan.

Does it work out for the best? Sometimes it does. Sometimes it doesn't. When it doesn't, it's usually painful. For me, I would see a large loan as an foolish risk despite the fact that there may be a good return.

So it's up to you. It might work out well for you. It all depends on if you're willing to take that risk.

Thanks for saving me the time typing this :)

If you've got a profitable business, and want to scale, of course take out your loan because the numbers are there. If you have a good idea, and you're pretty sure it could work, definitely forget about a loan for now.

Prove it with the profit first.

 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

JokerCrazyBeatz

Silver Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
120%
Jun 1, 2016
557
671
30
I would say only take out a loan if you know for sure you'll make enough profit to pay it back . I personally wouldnt do a loan just cus I hate owing people lol . But it's DEFF other options and ways to get the money you need if you're crafty
 

OldFaithful

Gold Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
159%
Mar 11, 2016
648
1,031
54
Northwest Indiana
Have you considered bootstrapping the project? It's not as fast and it's not sexy, but it's much less risky. The downside is that you have to pace yourself and grow slowly, building on sales & profits...but maybe that isn't a downside at all!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Kepler

Bronze Contributor
Summit Attendee
User Power
Value/Post Ratio
154%
Mar 4, 2015
71
109
27
Scottsdale
Credit cards with 0% APR for one year, if you need cash to put into the company buy stuff with the credit card and a little on a debit card.

then return the stuff and have them put the refund all on the debit card.

then take the cash and put it in your business account.

hope that helps some.
 

lowtek

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
332%
Oct 3, 2015
2,164
7,186
42
Phoenix, AZ
Credit cards with 0% APR for one year, if you need cash to put into the company buy stuff with the credit card and a little on a debit card.

then return the stuff and have them put the refund all on the debit card.

then take the cash and put it in your business account.

hope that helps some.

is... is that legal? Sounds like a pretty cool hack
 

Kepler

Bronze Contributor
Summit Attendee
User Power
Value/Post Ratio
154%
Mar 4, 2015
71
109
27
Scottsdale
is... is that legal? Sounds like a pretty cool hack
Lol one of my friends did it to get $10,000 to start his ecom company.

just make sure the store has a good return policy.

I don’t see why it would be illegal, the lender still gets paid back, and you Still took out credit.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Kepler

Bronze Contributor
Summit Attendee
User Power
Value/Post Ratio
154%
Mar 4, 2015
71
109
27
Scottsdale
Lol one of my friends did it to get $10,000 to start his ecom company.

just make sure the store has a good return policy.

I don’t see why it would be illegal, the lender still gets paid back, and you Still took out credit.
Apple store is an easy place to rack up a big bill with a few items.

if they ask the reason for the return just say your company didn’t receive the funding you were expecting and couldn’t go forward with your expansion.
 

Vigilante

Legendary Contributor
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
596%
Oct 31, 2011
11,116
66,265
Gulf Coast
Last seen Feb 15, 2017

Necro thread. Closed. Thanks @Kepler
 
Status
Not open for further replies.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top