When starting a business, which do you prefer, borrow capital from your parents or borrow money to lending institution?
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$5 Answers
Getting involved with relatives is a dicey proposition. I don't mean to scare you off, but the statistics for small businesses are not good. Many fail, and if your parents can't afford to lose their investment, then they must not be making it. A bank hedges its bets with many loans; your parents probably can't.
Under certain circumstances, like a fairly small loan that a bank wouldn't be interested in, your parents may be a good alternative resource. But in general, your parents aren't the business experts a bank is, and the bank is better qualified to tell you whether your business is worth investing in.
Good luck with your idea.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
I prefer to save up my own money and pay for things myself. I don't like having monthly payment commitments and I don't like paying interest. You never know what might happen that will prevent you from making your payments and you can get in a rough situation real quick.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
I prefer to borrow capital but in the same time I make sure I have the same amount with me as a insurance policy of my own. The reason is:
Whenever you start a business you should always have a exit strategy and having the same amount with you gives you this exit strategy.
Borrowed money is always in your mind and give you the edge which you need to run a business.
The more resources you have the better for you to run you business thus having borrowed capital plus your own money helps to make your position strong.
Cheers,
Vishal
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
The interest rate is lower with my mom or in-laws than the interest from a lending institution.
Also if I need an extension, because I cannot make the payment on time, I do not have to pay a late fee.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
