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A loan has to be repaid. Since most projects fail, odds are not on my side. I have no desire to dig myself into a hole.

This is why it’s more common for people that are already well off to be entrepreneurs[1] — they have a safety net.

[1]: https://qz.com/455109/entrepreneurs-dont-have-a-special-gene...



A business loan is issued to the business, not to you as an individual. Failing to repay the loan means your business goes into collections (and possible bankruptcy), not that you as an individual suffer for it.


Please don't speak of things you know nothing about. No brand-new business would ever get a loan issued without a signature from some person or established entity who can be held liable if the business defaults.

Source: I have owned multiple small businesses.


No one gives out unsecured business loans to start-ups.




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