Venture capital and ‘angel’ investment seems like an attractive alternative to personal loans – you’re asking opportunity seekers to invest their money in your business in exchange for a share of the profits. While it can cost you more in the long run, it means that you won’t be borrowing money as a loan that needs to be paid back whether your business makes a profit or not.

Venture capital seems like a great idea to the budding entrepeneur. But the strings attached may make it your last resort.