If you don’t have your own money to start your business but have a really good business idea, you can instead look in another direction. There are other ways to go, so stick to your idea! What we are talking about here are two types of start-up loans as well as bank loans. It is common for the bank to require collateral in order to lend money to start a business. Such collateral can be your home or your personal guarantee for the loan. A government loan that exists to promote entrepreneurship. Since the idea is that loans should supplement the banks, the interest rate is usually higher than for a bank loan.
If you want to know more about the possibilities of borrowing money in connection with starting and running a business. Yes of course! You are not out of the game yet. You can start a limited company with a payment note. The requirements for the founder of a limited liability company are that the person must be of legal age, not have a trustee, not be declared bankrupt or banned from business. Debts or notices of payment are not in themselves an obstacle for you or your limited company.
It is fine to start a limited company alone or together with others, you decide that yourself together with any co-founders of the company. It is important that you think through the pros and cons of both options. As a sole proprietor, it is easier to make quick decisions and you have full control over the business. On the other hand, companionship means shared responsibility and risk-taking and you have someone to bounce ideas and thoughts off of.
Running a joint-stock company – unlike a sole proprietorship – can never be fully a one-man show. Because regardless of whether you choose to start by yourself or with others, you need to remember that a limited company must always have a board. If the board has fewer than three members, a board deputy is needed. It is always useful to team up with someone or a few who have experience, knowledge and business contacts.
Here you can read more about what you can think about as a sole entrepreneur or if you are going to run with a partner start a business together or alone. A limited liability company is a legal entity, which means that the company itself can enter into agreements. It is also the limited company itself that is responsible for its debts and not you as the owner apart from any personal guarantee commitments linked to the company. Unlike the limited company, a sole proprietorship is not its own legal entity.
