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Post: Should Start-ups raise funds or borrow from banks?

Should Start-ups raise funds or borrow from banks?

The decision of whether to raise funds from investors or borrow from a bank depends on several factors, including your business needs, the type of business you have, your credit history and financial situation, and your future plans for the business.

If you are a startup and need funding to grow, both options have their pros and cons. Raising funds from investors can provide you with a larger amount of capital, as well as mentorship and connections. However, it also means giving up a portion of ownership in your company and having to share decision-making power.

Borrowing from a bank, on the other hand, provides you with more control over your business, but it also comes with debt repayment obligations and interest payments. Additionally, you may need to provide collateral or a personal guarantee in order to secure a loan from a bank, which could put your personal assets at risk.

Ultimately, the best option for you will depend on your specific needs and the goals you have for your business. You should carefully consider all of the options and speak with a financial advisor or accountant to determine what is right for your business. At Cambridge Advisers, we provide Chartered Accountant and CFO-as-a-service to assist you in your journey of fast growth and development.