Hey Guys,
I was just wondering which one is better for small businesses.
Bank loans are harder to get and they would want collateral property.
Guru's what do u think?
Hey Guys,
I was just wondering which one is better for small businesses.
Bank loans are harder to get and they would want collateral property.
Guru's what do u think?
It depends on the situation and a weighing of your priorities:
Maintaining control of your company? Advantage: Loan
Limiting your personal liability? Advantage: VC
Maximizing profits? Advantage: VC (Not constrained by debt obligations)
Long-term success? Advantage: Loan (Not constrained by VC interest to "get out" within 2-3 years)
These are just a few main considerations. Keep in mind, though, that bank loans and VC investments are not the only options for funding.
Personally, I prefer a loan to VC.
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