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 Investor or loan?, To raise fund

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TSSeng_Kiat
post Apr 19 2015, 07:33 AM, updated 9y ago

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Hi all,

In case we need to raise fund for business expense, which one would be the best, either finding investor to fund and in return offering them company share or loan from the bank?

Other than company share, what else I can offer to investor? I am pretty new with partnership business. Guiding from you guys is really appreciated.

Thank you.
mirage10
post Apr 19 2015, 08:16 AM

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raise fund for product development or expending ur business?
SUSyklooi
post Apr 19 2015, 08:56 AM

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hmm.gif if given shares in the company....
what power this new shareholder has over the running of this company? (unless he will holds 51% of it)
what/when is the "payback" of his loan/fees to be in the company as a shareholder?

hmm.gif if this is not resolved early.........


TSSeng_Kiat
post Apr 19 2015, 10:01 AM

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QUOTE(mirage10 @ Apr 19 2015, 08:16 AM)
raise fund for product development or expending ur business?
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Business expend
TSSeng_Kiat
post Apr 19 2015, 10:02 AM

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QUOTE(yklooi @ Apr 19 2015, 08:56 AM)
hmm.gif if given shares in the company....
what power this new shareholder has over the running of this company? (unless he will holds 51% of it)
what/when is the "payback" of his loan/fees to be in the company as a shareholder?

hmm.gif  if this is not resolved early.........
*
If so, why people invest by buying company share of 10-20% where they obviously no control over business?
SUSyklooi
post Apr 19 2015, 10:25 AM

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QUOTE(Seng_Kiat @ Apr 19 2015, 10:02 AM)
If so, why people invest by buying company share of 10-20% where they obviously no control over business?
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think it this way...would you buy into 1 that has no mention of how you gonna get back the money and got no control how the company operate? if you would, why?

hmm.gif if the company take new loans does the new shareholder need to get involve with the loan agreement with the lenders?

This post has been edited by yklooi: Apr 19 2015, 10:54 AM
TSSeng_Kiat
post Apr 20 2015, 03:24 AM

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QUOTE(yklooi @ Apr 19 2015, 10:25 AM)
think it this way...would you buy into 1 that has no mention of how you gonna get back the money and got no control how the company operate? if you would, why?

hmm.gif if the company take new loans does the new shareholder need to get involve with the loan agreement with the lenders?
*
Of course I will explain to the potential investors about the prospect of the company. I was asking either find investor or take loan is better for business expend.

You didn't answer the issue nor understanding the question.
SUSyklooi
post Apr 20 2015, 06:19 AM

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QUOTE(Seng_Kiat @ Apr 20 2015, 03:24 AM)
Of course I will explain to the potential investors about the prospect of the company. I was asking either find investor or take loan is better for business expend.

You didn't answer the issue nor understanding the question.
*
"Other than company share, what else I can offer to investor?" ( hmm.gif tis question looks familiar?)
I understand the question...I think it is you that did not understand the (indirect) answers or issue yourself...
I was asking you (indirectly) to think about "why people want to be investor...YOU have to explain NOT just the prospect of the company BUT also how and when they are going to get the money back and tell them whether they have any "power" over the operation, direction of the company and will they have liabilities if the company where to take loan in future." therefore it may be difficult to get investor unless you know the answer to the questions posed.

YOU may not tell them unless they asked...there are always some "water fish" that did not know what is important to ask too....all they want to know is they can have a share of the company. They think that being given a share of the company is Omni important.

here is my answer in direct and easy to read way...to the 1st question.
"if the company got prospect, why want to dilute the share of the "future" profits of the company...go get a loan for business expansion. "

this other is indirect answer....
the problem is whether your company can get a loan or not.....if can..then no problem....
if cannot then.....?

"Other than company share, what else can YOU offer to investor?"
(just take the share and no question asked?) hmm.gif

This post has been edited by yklooi: Apr 20 2015, 06:56 AM
-Davidoff-
post Apr 28 2015, 07:55 PM

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QUOTE(Seng_Kiat @ Apr 19 2015, 07:33 AM)
Hi all,

In case we need to raise fund for business expense, which one would be the best, either finding investor to fund and in return offering them company share or loan from the bank?

Other than company share, what else I can offer to investor? I am pretty new with partnership business. Guiding from you guys is really appreciated.

Thank you.
*
Hi,

what industry business are you into? Mayb i can help you on that. PM me. Thanks.

 

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