Before I say anything, I just want to state that I’m not a loan expert nor do I have any experience in any part of the financial niche. What I say here is what I’ve been told and/or an opinion. Please do your own research and don’t take financial advice from anyone but a trusted financial professional.
That being said, it’s Reality Check Time.
“According to statistics published in 2019 by the Small Business Administration (SBA), about twenty percent of business startups fail in the first year. About half succumb to business failure within five years. By year 10, only about 33% survive.”
(Source: ZenBusiness Blog Post)
Those stats alone are enough to make you want to run screaming in the other direction.
Needless to say, banks aren’t exactly YAY about funding new biz ventures. You’re probably going to be asked to put up collateral (meaning whatever you put up becomes property of the bank if you default on the loan).
Some suggested options to finance the business through:
- personal savings
- credit cards
- selling off assets
- taking out a home equity line of credit
No one can make the decision for you so it’s up to you to decide if you want to self-finance or take on more debt to get the ball rolling.