BANK LOAN VS. INVESTOR FUNDING, WHICH MAKES MORE SENSE?
Honestly, I’ve been down the investor road once and it felt like I was constantly pitching my own project back to people who didn’t really get the vision. Banks are a pain upfront, but at least they don’t care if you want to try something bold or weird—they just want their money back. If you’re confident in your direction and don’t need hand-holding, I’d say bank loans are way less stressful in the long run. The “mentorship” from investors is overrated unless you actually want someone steering the ship with you.
BANK LOAN VS. INVESTOR FUNDING, WHICH MAKES MORE SENSE?
I totally get what you mean about investors not always “getting it.” When I started my studio, I went with a small bank loan. It was stressful at first, but honestly, having full creative control was worth it. Investors can be great if you want connections or advice, but if your vision is clear and you’re stubborn (like me), the bank route feels cleaner. Just make sure you’re ready for those monthly payments—no skipping on that part.
“having full creative control was worth it. Investors can be great if you want connections or advice, but if your vision is clear and you’re stubborn (like me), the bank route feels cleaner.”
I get where you’re coming from, but I’ve seen plenty of folks get buried by those “clean” bank payments when cash flow gets tight. With investors, yeah, you give up some control, but sometimes their experience (and patience) can save your skin when things go sideways. Not saying one’s always better, just that control isn’t everything—sometimes a little outside perspective keeps you from making expensive mistakes.
I’ve been on both sides—took a bank loan for my first project and brought in investors for the second. Honestly, the bank route stressed me out way more when things slowed down. Investors can be a pain, but they’ve bailed me out of some jams I didn’t see coming. There’s no perfect answer, just depends on your risk tolerance and how much you value sleeping at night...
BANK LOAN VS. INVESTOR FUNDING, WHICH MAKES MORE SENSE?
That’s interesting, I always figured banks would be the “safer” stress-wise, but maybe that’s just because I’ve never actually had to answer to investors. When you say investors bailed you out, was that just extra cash, or did they get involved in the project itself? I keep picturing someone showing up with a clipboard and a bunch of “suggestions” about my kitchen layout...
Also, with the bank, did you ever feel like you were just a number? I’ve heard horror stories about loan officers changing mid-project and suddenly nobody remembers what they promised you. At least with investors, you can talk things out (even if it’s awkward). But then again, I’m not sure I’d want someone else’s opinion on every paint color.
How did you decide which way to go for each project? Was it just about the money, or did the type of project make a difference? I keep going back and forth on this...
