Finance Option

User Generated

wfsvyre08

Business Finance

Description

Your a business consultant and a customer was seeking advice on whether he obtain a bank loan or seek investors to fund the 100,000 need for the startup costs related to his business what would you suggest? Explain the pro and con of each option

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Explanation & Answer

100% original

Obtaining bank loan is the best option because it is like your equity but in case of investors fund, investors become your partners and you has to walk with them.On the other side you bank loan will your own capital and you can run your business with your will.The another aspect of newly born business is profit.At the start of the business profit earning ratio is low so investor want immediate and heavy profit.

rate me Please, Thanks in Advance :)


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