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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

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Chat to the Money Advice Service
Monday to Friday, 8am to 6pm
Saturday, 9am to 1pm.

 

Shall I borrow from a bank or a friend when starting my business?

“Is it better to get a loan from the bank or someone you know?” – Kate

That’s a great question! My answer to that is that it is really about who will give you the best deal.

For example, you could go to the bank rather than someone you know because that way you won’t have the personal pressure if you can’t pay them back when promised.

However, on the flipside, if you get money from a friend, perhaps you won’t be charged any interest which is great for a new business as saving costs where you can will be important.

One option to consider is perhaps rather than getting a loan from a friend, they could perhaps invest that money in your business for a small percentage of the business itself?

If they were always going to lend you the money, it also means that they believe in you and that way, when you succeed, they are able to benefit from your success too! Either way, you won’t have had to borrow any money.

Chat

Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

Launch Chat

Chat to the Money Advice Service
Monday to Friday, 8am to 6pm
Saturday, 9am to 1pm.