Business Help at Utah State University
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Why is it so hard to get start-up money?

Every time you borrow money from anybody, they weigh the risk against the reward (interest). A start-up has a lot of risk. If you buy an existing business you know that tomorrow you will have customers because they are already coming in. If you start a new business, you don't know for sure if you will have customer 1 tomorrow. That increased risk really tends to scare off investors.