Why Taking Loan is Better Than Selling Equity Of Business?

If you are planning to start your own business or you are already running a business then you would require a continuous supply of funds for smooth day to day business operations. You can meet the fund requirement either by your own past savings, by borrowing loan from financial institutions or by equity financing. You may not have the sufficient savings to fulfill the fund requirement in such a situation either you can borrow a loan or you can raise funds by selling shares of your company.
Also Read: How Is Business Financing Better Than Giving Up Equity

 
Now, if you go for equity finance and decide to sell shares of your company, you may get the desired amount, but then you have to distribute profits among shareholders. Also, you have to take the consent of shareholders everytime you take any important business-related decisions. If you wish to take independent decisions, relating to your business then taking a business loan is a better option. Along with independent decisions, banks are not entitled to get any profits and these can be reinvested in the business. Also, while taking a business loan you can avail several tax benefits attached to it. With numerous banks offering business loan in India, availing it is very easy. For quick approval of your loan application, you can apply through an online aggregator.