Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources

After the initial startup phase, most small companies will come to a point where they need a blast of cash to keep business flowing on an upward trajectory. It may be that the firm needs to invest in equipment, more inventory, or additional staff. Whatever the reason, getting ahold of more money is essential. Two of the most talked-about ways of securing funds are small business loans and venture capital (VC). Here’s how they stack up against each other:

Small Business Loan
Pros – Taking out a loan with a bank or other lender allows you to maintain complete ownership of your company and still get a cash infusion. The lender will not have a say in how you run your business or in how you use the funds. Obtaining financing from a bank also requires a much shorter time table than that of VC. With a small business loan you could receive money within just a matter of weeks.

Cons – Bank loans typically require collateral, and putting either personal or company assets on the line can be scary. If you are not able to follow through on the loan terms because your business fails or you have some personal setbacks, you will still be responsible for the full repayment of the loan.

Venture Capital
Pros – Money from venture capitalists typically does not have to be repaid if your company goes under. They assume the risk when they invest. Also, finding the right VC can also bring with it valuable mentorship to help your business make the right choices.

Cons – It can take months or even years to connect with the right VC partner. Even after you make a deal, it may take longer than a bank loan for the money to arrive. And of course, with VC you will usually be giving up some control of your company with plenty of advice (sometimes unwanted) about how to run your firm.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources