Loans that Hurt Your Businesses
Getting a small business loan to help you start your own business is smart. You can buy equipment and advertise extensively. This will help get your businesses name out. An advertising campaign takes money, and a loan can really help.
While getting a small business loan is a good idea, there are certain loans that you should never accept. Only loans based on business credit are good loans, try to avoid giving your personal guarantee if possible.
Never take a loan from a family member. Unless you have an exceptional family, they will begin to question your business decisions. After all, their money is at stake so they may feel they have a right to offer suggestions and advice. The same advice goes for friends, if you are lucky enough to have friends that would offer to help.
Even if a family member does offer good advice, let it be because you asked them for their opinion, not because they lent you money. If you have ever tried to get business credit, you know how challenging it can be. So much so that you may be tempted to take your parents loan, but resist. You will be much better off learning how to establish business credit. If you cannot get business credit, there are companies online that can walk you through the steps you need to take to finance your business using other peoples money, not your parents.
Finance | , December 9, 2011 4:59 am