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Bank loan vs. investor funding, which makes more sense?

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sgreen90
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Been thinking lately about expanding my small business and I'm kinda stuck between going for a traditional bank loan or trying to find an investor. Bank loans seem straightforward, but the interest rates and repayments can be a bit scary, you know? Investors sound great, but then again, giving up some control or profits doesn't exactly thrill me either. Anyone here been through this decision before? Curious which route you took and how it worked out for you.

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astronomer87
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"Investors sound great, but then again, giving up some control or profits doesn't exactly thrill me either."

Honestly, both options have their downsides. But have you considered bootstrapping or crowdfunding instead? Keeps your control intact and avoids hefty interest payments... might be worth exploring before committing either way.

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"Honestly, both options have their downsides. But have you considered bootstrapping or crowdfunding instead?"

Crowdfunding can be great, but it's not always as straightforward as it sounds. A friend of mine tried it for his small business, and while he kept full control, managing the campaign itself turned into a full-time job. Plus, there's no guarantee you'll hit your funding goal. Bootstrapping is solid though—if you're patient enough to grow slowly and carefully, it can really pay off in the long run. Just depends how quickly you need to scale...

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frodoc85
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Good points there, but bootstrapping isn't always as safe as it looks. I've seen startups lose momentum because they underestimated how draining slow growth can be. Sometimes, securing funding upfront—even with strings attached—can give you the breathing room to innovate properly.

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sgreen90
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The points raised here resonate with my experience. When I was considering expansion, I carefully analyzed both options and found bank loans to be more predictable and manageable in terms of budgeting. Investors can indeed provide valuable breathing room, but the trade-off in control and profit-sharing was something I wasn't comfortable with. Ultimately, choosing a loan allowed me to maintain full decision-making authority, which aligned better with my cautious financial approach. It's essential to weigh your comfort level with risk against your long-term business objectives.

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