Starting A Business: Debt or Self Funded?

<p>Guests:</p> <ol> <li>Tom Ryan Founder of Starter 100 and Miguel Thompson Business Development Manager of NCB’s SME Unit.<br> </li> </ol> <p>Welcome to Your Business Matters, a podcast of EXIM Bank Jamaica where we bring thought leaders together on thought-provoking ideas and methods to help grow your business.</p> <p>There are many factors to consider when starting a business. What product/service to offer? Will I host the business online or open a traditional brick-and-mortar establishment? And so on and so forth. But before you settle on any of these, you need capital, yes hard currency. In this week's episode of Your Business Matters, we tackle the issue of start-up funding. Is it wise to borrow from a bank to start my business or can I afford to shoulder these expenses out of pocket? Or better still explore non-traditional ways of sourcing funding? Perhaps you've heard of the term 'good' debt, low-interest debt that over time, helps to increase your income. However the risk-averse may argue that making use of a loan when the return on investments is uncertain is too much of a risk to take.</p> <p>While it can be argued that the use of personal savings would be easier, the option is not feasible for many entrepreneurs, and attracting investors especially for start-up companies is a task and a half. So what then is the verdict? Do I fund my business out of pocket or from other non-traditional ways or should I seek funding from a bank? Find out more on this evening's episode of Your Business Matters...</p> <p>Some of what we discussed includes:</p> <ol> <li>From where you sit, what has been your experience with entrepreneurs who have had start-ups but were not able to garner the funding they desired?<br> </li> <li>Other than interest, what benefits do banks derive from issuing small business loans?<br> </li> <li>Why should start-ups look into non-traditional ways as opposed to accessing a loan from a bank?<br> </li> <li>Why should entrepreneurs seek to start up loans from the bank?<br> </li> <li>Is