Why it is important to investigate which option is right

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Reference no: EM131295170

Discussion

Please respond to the following:

• Suppose you need $1 million dollars to start your Dream Business. Research ways to get the money for such a business. Compare two sources of financing you might obtain. (e.g., Small Business Administration (SBA), private investors, private loans, personal assets, and / or personal credit cards.) Identify the risks and benefits of your two choices.

To have money to start a business is the main ingredient needed, whether it's borrowed money, lines of credit money or your own money. Often times many people don't qualify or have options for financing so this why it is important to investigate which option is right for you.

Nonetheless, the first financing option that I will choose is private investor's with private investor's there are pros and cons, number one pro's you have the capital needed to start the dream business, the second advantage is no loan payments and the number one cons are the high expectation of return. The second financing option is private loans, with the private loans the number one pros is the borrowed money which has an interest rate tied to it and the second pro is it has no entitlement to profits and the number con's of private loans is it becomes the large expense.

Reference no: EM131295170

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