Finance Which ways of financing a business you can never opt for?

[btaliat]

Financing a business is one of the hardest ways in business formation. Some have even shelved the idea of having a business just because they don't have adequate financial baking.
Though, there are several ways of financing business but not all are acceptable and advisable to go for. Which of the ways of funding business you can never go and why?

 

[moonchild]

Personally, I won't go for a loan as a means of financing a business, because starting a business it's a risk itself so why would yo undertake such with someone else money, besides there will be emotional and mental stress attach to that also, loan as a means of financial backing wouldn't let you take adequate risks you need to succeed.

 

[Mandy96]

There are several ways to fund one’s business and due to my experience, I think the two times people get desperate to take such action is when the company is struggling financially and when someone is just starting an establishment as an entrepreneur, despite the these two period I do not support it one particular way to get funded, and this is by merging with another company. This is very dangerous, although it might save the the moment and I am not disputing the fact that it has some advantages as well, but the bad effects are usually later in the future.

 

[Mataracy]

You are right. There are many ways of sourcing for money to finance a business like taking loan from the bank, taking loan from cooperatives or borrowing from friend to finance business.
But the only one that I can never go for is taken loan that has high rate of interest to pay back. O can not take it at all no matter how urgency the need may be.

 

[Mika]

I will never use black money to fund my business. I will never use money from illegal sources (mafia for example). I am an ethical and moral person, I will never give up my ethics and morality to make money because I want to do everything in a legal way,

 

[Jasmine]

I built my business from my savings. Therefore, I believe using your own savings is the best option for funding your business. But if you are planning big, your savings will not be enough, in that case burrowing from friends and family can be a better approach. Getting a bank loan is also a good idea for funding your business but there are hassles for bank loan. For example, you need fixed asset that you can give as collateral. Your business needs to be registered and already started, you need good credit score, etc. If you can get Angel investors, that would be wonderful.

 

[Yusra3]

Prohibited things such as money laundering or trading in illicit goods are definitely not going to be included in a business financing plan. Forming of lies, misinterpretation or misinformation to acquire funding is unethical and is punished by law. The utilization of personal funds more than one can risk or the taking on of ludicrous debt without a feasible repayment plan is financially senseless.