Starting a business is one of those things we all want to do at some stage of our lives. However, despite our best intentions, we are sometimes bugged down by financial difficulties. Borrowing money from banks or friends and relatives can be the answer. But are you aware of the risk involved in borrowed money.
First, there is the issue of paying interest on the money borrowed if,for instance, you borrowed from a bank. Not only would you have stress when you have to repay the money but sometimes your assets may be seized and auctioned if you are unable to pay. Secondly, it might bring strife and misunderstanding between you and your family members or friends in case you default on paying the money. Lastly, borrowing can become such a habit that you find yourself in a hole it is difficult to get out of.
What is the best way to start a business then? You have have to count on your saved money. This would put less stress on you and you would not have to worry about not being able to repay a loan. I know some people would disagree with me. Register your thoughts below.