As far I am concerned, I would first use personal savings, a business plan, and a bank loan or investor funding to cover startup costs, working capital, and equipment. A clear cash-flow and repayment plan would strengthen the funding application.

A mortgage could work if I am buying premises or need lower-interest secured funding, Some people think the property is at risk if repayments cannot be met. What's your take?

The interest rate of banks in my country is too high. You don't want to put yourself in financial stress. They also demand for collateral that is worth 5 times more than what you are borrowing.

On Nov 3, 2026, BigAbass said:

The interest rate of banks in my country is too high. You don't want to put yourself in financial stress. They also demand for collateral that is worth 5 times more than what you are borrowing.

What ever the interest rate, even if it’s 10% per anum and you’re in a business that earns you @15% a day you still are a winner. Yes, collateral is must but in my country you need not borrow agains collateral for small amounts but security by two existing customers is enough. In most cases government backs small businisses without any collateral or any security.