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    You will need to sit down and crunch some numbers. Try to get an idea of what your interest rate may be. How much money will you need to start up and carry yourself through the first few months? How long would it take you to save? How long to pay off the loan? How much money do you expect to be able to put back in to paying off the loan per month from the business?
    In order to get a loan in the first place, you will need to be able to answer many of these questions and more. If you are replacing your current source of income, make sure you have the savings in place to keep your belly full and a roof over your head while the business starts up.


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    Quote Originally Posted by Lostvalleyguy View Post
    You will need to sit down and crunch some numbers. Try to get an idea of what your interest rate may be. How much money will you need to start up and carry yourself through the first few months? How long would it take you to save? How long to pay off the loan? How much money do you expect to be able to put back in to paying off the loan per month from the business?
    In order to get a loan in the first place, you will need to be able to answer many of these questions and more. If you are replacing your current source of income, make sure you have the savings in place to keep your belly full and a roof over your head while the business starts up.
    I completely agree with LostValleyguy's comments that at the end of the day you have to do some intense number crunching in order to make your decision. You have to find out whether the interest costs which you will incur will be able to earn you an amount which is over and above the interest cost. And you have to take into account all possible contingencies while making these calculations.


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    I would get a loan and try to invest the least amount of money you can into your own business. This is so that the business does not bankrupt you individually.


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    Quote Originally Posted by pahagwl View Post
    I completely agree with LostValleyguy's comments that at the end of the day you have to do some intense number crunching in order to make your decision. You have to find out whether the interest costs which you will incur will be able to earn you an amount which is over and above the interest cost. And you have to take into account all possible contingencies while making these calculations.
    If your business can be sustained and return the credit while making you a good enough profit in the WORST CASE scenario then you should take a loan


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    Saving may be inefficient but launching a business with debt is a sure fire way to put you and your new business at a distinct disadvantage. I personally believe that if you need money and can't or aren't willing to save up for it, you can try finding venture capital money or launch a crowd funding effort. This way you can get some cash without having to repay it right off the bat. If this is a startup you'll have to prove that you have the chops before a VC will give you any money, but if you have experience and a solid business plan, then this might be right up your alley. And being debt free will go a long way to helping you secure VC funds.


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    You need to ask yourself a different question. The question that I had asked myself was:

    1. Which of the one should I do (saving or loan) to get started soon?
    2. Once I get started soon, what are my prospects of paying back (in case of loan) or saving (in case of wealth creation)?

    When you attempt to answer this that is when you make progress in starting and running a business. Let me know, if you need any more help on this.


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    Yes, I agree w/ LostValleyGuy. Work with some numbers and map out a business plan. If your business will see a profit over the next "X" number of years, then take out a loan covering "Y" number of years so that you can comfortably pay back the loan.

    Good Luck!


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    The decision to save for your business is only logical if there is a source of income at that moment that will lead to you getting enough money to start your business. It is advisable to get capital from your own pocket if you can. This will not only give you a source of accomplishment but also a way of maintain power over your own business. If you consider borrowing money from the bank, it should be because there are orders to fulfil and not just because you are inpatient. When your business receives orders and you require stock, that's when you should take a loan. Taking a loan to overload on stock with zero orders is a common mistake that leads to poor company growth and most times debt.


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    Saving is good though it must n should not make one miserly, mean and preoccupied to accumulate more n more. Borrowing is allowed if it is real need and it must not be polluted with interests and strict time bounds to pay, since situations,circumstances will be unpredictable. I don't like banks at all.


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    I think that saving for a business is something really hard, let's face it, opening up a business requires a lot of money and the average person doesn't have the capacity to save so much money. So I think that the most realistic option is to ask for a loan, it's always a risky option because our neck is on the line, but we have faith on our project and we have commitment we should go for it, it's our chance to make it in this life.


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