Education World

Small Business � Money & Debt � Calculate Take Home Pay � Advantages & Disadvantages of Borrowing Money from the Bank by Linda Ray Related Articles 1 Advantages & Disadvantages of Bank Loans 2 Advantages & Disadvantages of Borrowing Money for a Business From Family 3 Sources of Finance and Their Advantages & Disadvantages 4 The Advantages of Borrowing Money to Start a Business In the early stages of your business, you are unlikely to have all the capital you need to get started, and you have a wide array of options for financing, all of which are viable. Bank loans are the most traditional way to finance your business, but as with any other type of loan, borrowing from a bank has advantages and disadvantages, all of which you should consider carefully before making your move. Ownership When you take out a bank loan, you have complete control over what you do with the money. Unlike other forms of loans and financing, the bank does not assume any sort of ownership or ...

Small Business � Money & Debt � Loans � Advantages & Disadvantages of Bank Loans by John DeMerceau Related Articles 1 Advantages & Disadvantages of Borrowing Money from the Bank 2 Sources of Finance and Their Advantages & Disadvantages 3 Advantages & Disadvantages of Retained Profit 4 Advantages & Disadvantages of Borrowing Money for a Business From Family Bank loans are available to finance the purchase of inventory and equipment as well as to obtain operating capital and funds for business expansion. These loans are a time-honored and reliable method of financing a small business, but banks often only finance firms with substantial collateral and a long track record, and the terms they offer are often very strict. Business owners should weigh the advantages and disadvantages of bank loans against other means of finance. Basic Advantages of Bank Loans A bank loans money to a business based on the value of the business and its perceived ability to service the lo...