What are the advantages of borrowing money from a bank?
you run a small business – or would like to start one – you’ll probably need to raise money at one time or another. You may want to expand on your success, or you may suddenly need extra cash in an emergency. No matter what the reason, if you need to tap outside sources for cash, you essentially have two choices: borrow money or sell an ownership or equity stake in your business. Here we focus on raising money by borrowing, which has the big advantage of keeping business ownership in your hands. Most entrepreneurs borrow money privately from friends or family members, or apply for a loan from a bank or other institution.
