Advantage of taking loan to start a business.

[Chibson]

there is really nothing wrong to take a loan you know that a venture into a business but it is very important for you to have the right knowledge in order not to go into bad debt.

 

[McIrx]

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

Loans are meant for expansion of businesses. When it is taken to save a dying business then it is at a great risk. Most of the big companies out there are operating with huge loans of small interests.

 

[skyliequiz]

You may utilize the money you obtain through business finance to boost your working capital, which is especially useful if your firm is experiencing financial difficulties. Without tapping your emergency reserve, you may sustain your working cash flow and meet any short-term operational demands and unforeseen costs.

 

[Psalmseen]

I'm totally against the idea of taking a loan to get a business started. It's not healthy at all.. The best thing is to form a partnership. You don't know what would become of the business.

 

[Buba]

Write your reply... advantage of taking loan to start a business is that when you take a loan to start your business you most know how to get profit at one time to go and pay for your own loan

 

[Sincerem]

Loans are meant for expansion of businesses. When it is taken to save a dying business then it is at a great risk. Most of the big companies out there are operating with huge loans of small interests.

Those who can manage loan has a long way to go when it comes to utilizing loan to carry on with their business for long. It will be detrimental when the business is running shortage of finance.

 

[akinlolu99]

Taking credit to begin a business enjoys benefits and impediments however to me the benefits are more in case one is extremely fortunate, it makes you to be more dedicated, genuine, and monetarily focused yet prior to taking advance we ought to guarantee the business is exceptionally rewarding, attempted and tried.

 

[Alexandoy]

Taking credit to begin a business enjoys benefits and impediments however to me the benefits are more in case one is extremely fortunate, it makes you to be more dedicated, genuine, and monetarily focused yet prior to taking advance we ought to guarantee the business is exceptionally rewarding, attempted and tried.

What would happen if the business does not earn in the first 3 months of operation? You are paying the installments of the loan which is an added expenses. The business will be shrinking because the funds are diminishing. All are outgoing funds and there is no income. What now?

 

[jeff87]

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.

I agree with you. There are advantages and disadvantages in taking a loan first before starting a business. You can now start doing the business if you have the money from the loan. The disadvantage is you will also be problematic about paying the loans.

 

[Jlife]

You may utilize the money you obtain through business finance to boost your working capital, which is especially useful if your firm is experiencing financial difficulties. Without tapping your emergency reserve, you may sustain your working cash flow and meet any short-term operational demands and unforeseen costs.

Generally I do not see any serious advantage of getting a loan because it is not necessary. people who are interested in business should rather save money to start the type of business they are interested.

 

[Blessedsam60]

To my own understanding, taking loans with higher interest rate isn't good enough. This resort into stress and pressure. I was once wooed by an only credit platform to borrow 23k to return 28k in 2 weeks. Very nasty

 

[McIrx]

Those who can manage loan has a long way to go when it comes to utilizing loan to carry on with their business for long. It will be detrimental when the business is running shortage of finance.

That is why some companies downsize and everyone is wondering what the cause may be - business isn't running smoothly and they need to cut cost. Loan is only good when business is running smoothly and their seems to be potential for more returns if more is invested.

 

[Richard92]

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.

One fundamental and basic advantage of taking loan to start a business he is he still up and fasting of the business process with the issue will not have challenges in terms of capital.

 

[ahmedo24]

Fundamentally only very few people text loan and succeed when starting a business so the best is if you can start with as little as possible then you expand if the business is growing fast with loan.

 

[Blessingedidiong]

I really don't see any advantage in starting a business with a loan. Although it is a very easy way of getting capital for a business start up,it is still a great risk for a business. The interest rate attached to loans are enough stress for the business coupled with the thought of how to pay back the loan.

 

[Buba]

Write your reply...advantage of taking loan to start a business yes if you don't have money to start you can take a loan and rather pay them back and continue with your own.

 

[kayode10]

Taking a loan to establish a business put you on the fast track to start operation and to start making profit soonest. What is spring button to know that load is a two-edged sword and it has to be taken with care.

 

[Sincerem]

That is why some companies downsize and everyone is wondering what the cause may be - business isn't running smoothly and they need to cut cost. Loan is only good when business is running smoothly and their seems to be potential for more returns if more is invested.

You're right my dear. When the company isn't having it at its best. Taking loans to build up isn't the best, what you said is the best for the company to earn more dividends and pay back the loan on time.

 

[Hena101]

The only advantage is that you can start a business even when you don't have money but i don't advice people to start business with loans.

 

[Filicit]

It's not advisable to start a business with a loan except you have a sure back up that can help with repayment if the plans fail, but loans generally provide start up needed for starting and growing