Raya wants to start a card business, however she does not have enough capital. Identify a way in which she can raise capital. What are the Advantages and Disadvantages of this method?

One option to raise capital for Raya's Card Business is through taking out a loan. This can either be from friends and family or the bank. It is my Opinion that taking out a loan from the bank is more viable. To do this she will need to present a viable business plan with significant self investment or collateral to show how profitable, and confident she is in her business. One advantage is of this method would be that real would not need as much self investment to begin her business and will have the backing of the bank. However, the main disadvantage of this method is that she will have to pay the money back and it may affrct her personal credit score.

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