Advantage of taking loan to start a business.

[ahmedo24]

We are fully aware that starting a business with loan is most times unproductive because of the interest rate or have difficulty to break even at the right time. Despite these disadvantages there are still advantages like it make you to be more serious and committed and it build your financial discipline. Share your thoughts.

 

[Alexandoy]

I don't see any advantage in taking a loan for a start up of the business. The owner is already saddled with pressure that is the monthly installment of the loan especially if the money was borrowed from independent lenders with usurious interest rate. So far, I don't see any good that a loan will bring to the business.

 

[Bookwormlux1]

Taking loan to start your business would help you, especially when people are not willing to support you and you are sure of the prospects of the business.

 

[ahmedo24]

Taking loan to start a business has advantages and disadvantages though to me the advantages are more if one is very lucky , it make you to be more committed, serious and financially disciplined but before taking loan we should ensure the business is very lucrative, tried and tested.

 

[Sariana23]

If you are sure about the business you are about to start, and you have a certain amount of money saved but it is not enough, it is valid to request a loan, preferably small, to start the business. So that the debt to be incurred and the interest is minimal. Then such a loan would be favorable for the company.

 

[Abigael]

I have never thought of that advantage of making you more serious with your earning. It is really true, you will work hard in order to pay back the loan before the interest is too much.

 

[Sincerem]

We are fully aware that starting a business with loan is most times unproductive because of the interest rate or have difficulty to break even at the right time. Despite these disadvantages there are still advantages like it make you to be more serious and committed and it build your financial discipline. Share your thoughts.

Anything that has disadvantage also have an advantage, just as you outlined it. Taking loans, is never easy to cover up, unless one works tirelessly and disciplined financially to achieve that. What makes me to get discouraged on loans, is the interest rate. Some loan institutions tends to offer loans with high amount of money, and i don't take positive in such kind of loan cos the repayment terms will be hard to cover up.

 

[Shigobad20201]

We are fully aware that starting a business with loan is most times unproductive because of the interest rate or have difficulty to break even at the right time. Despite these disadvantages there are still advantages like it make you to be more serious and committed and it build your financial discipline. Share your thoughts.

Starting a business with your own money is the best thing to do , you will never have the cause to be scared about returning loan money when you are supposed to be thinking about how to move the company forward.

 

[Yugocean]

Business with loan is simple, most of the people do that, even established business needs loan and they pay with interest.. Without loan a Business is not imaginable. However Business have to be successful to payback loan with interest.

 

[Adventurer]

Taking a loan is not always the best as it puts pressure on the business, but sometimes we've got no choice, be very sure the business will bring returns before taking the loan though to avoid high blood pressure.

 

[ahmedo24]

I discovered if one take huge amount of loan and Invest it on a business you already have knowledge on, it is possible.to break even faster.

 

[Kane]

Loan comes handy when you do not have funds to start a business, however, starting a business entirely through loan can be risky.

 

[ahmedo24]

Loan comes handy when you do not have funds to start a business, however, starting a business entirely through loan can be risky.

You're right it is not doubt very risky especially me a first-time in business you will need to be extra careful otherwise the possibility to feel is very high.

 

[Kane]

One of the issues with starting a business through loan is you will have to start repayment before you are earning profits.

 

[Sincerem]

That's why i don't love borrowing to start any initiative at all. I can't be having two things on my mind. Paying for loan interest rate and making out my own gain.

 

[Kane]

If you do not have financial backup, taking a loan to start a business can be very risky. Perhaps, a good strategy is using 50 percent your own savings and 50 percent loan.

 

[Justin]

It will be advantages only when your businesses succeed. Once it starts to fail, loan will be a financial burden.

 

[Kane]

You never know whether your business will succeed or fail before you start it. If you have an idea, skills and knowledge but no funds to start a business, bank loan is a great way to get started.

 

[Sincerem]

It will be advantages only when your businesses succeed. Once it starts to fail, loan will be a financial burden.

Their is no where i considered loaning advantageous in nature. It just compound to my burden when borrowed to assist my business from collapsing.

 

[Justin]

Loan can be advantageous. I have seen a lot of people succeed in business through a bank loan. For a business that s functioning well, loan is a boon.