[sashagim]

I think taking a loan could be better in terms of risk management and growth rate. Let's say you have a business with a steady, growing revenue, currently with $50k MRR, $10k profit, and you want to invest $100k for expansion over the next year (hire another dev, marketing, whatever). You can do this from your own revenues, but then you're at zero profit, and every decrease in revenue puts you into loss. Not a good place to go to. On the other hand, you take the $100k loan, and now you're operating with a financial cushion, have enough time to recover from a decrease in revenues, and in case of a disaster someone else takes part of the risk. You could of course start putting $10k/month a side, and start expanding in a year, but you'll lose a year of growth.