- Once your loan is repaid with interest, you have no further obligations to the lender. In the case of equity crowdfunding, you are obligated to share future earnings with your investors.
- Application processing time is relatively shorter in comparison to equity crowdfunding.
- You retain full ownership and control of your business since the investor does not claim equity in the company.
|
- If your business can’t repay its debts on time, you may be forced to liquidate assets or shut down your business altogether.
- You could be held personally responsible for repayment of the loan if your business is unable to repay the loan.
|