Personal Savings
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Much of your start-up funding may come from your personal savings. Advantages to using your own personal savings include:
- you are not indebted to anyone
- you have control over expenses and how you run the business
- you are not paying interest on loans
- you build credibility and create a good impression in the eyes of potential investors
Small Business BC advises that you aim to fund at least 25% to 50% of your business from your own assets. This shows prospective lenders and investors that you are personally assuming some risk, and are committed to your business success. It may also be a requirement for many small business loans.