Business Acquisition Financing: Bank Loans vs. Private Investors in Pakistan
Business Acquisition Financing: Bank Loans vs. Private Investors in Pakistan
What are the key differences and typical interest rates for business acquisition loans from Pakistani banks versus local private investors?
1 Answer
Financing a business acquisition in Pakistan often comes down to choosing between bank loans and private investors, and each path has its own feel and trade-offs. Bank loans offer structure, predictable repayment terms, and lower overall cost, but they require strong financial documentation and solid collateral. Private investors, meanwhile, are more flexible and can move faster, though they usually expect equity, influence, or a share of future returns. The right choice depends on whether you value control and stability or prefer quicker access to funds with fewer formal hurdles.