Advantage of taking loan to start a business.

[eLdavis]

Well, the only advantage of taking loans is that you may not really need to sell your assets in order to gain capital for investments. However, this advantage only counts IF you gain success after taking loans for your business.

Very true, the only Advantage I see in taking loans is the fact that startup would not take time. Unlike a person who is saving up to start the business or a person who has to work hard to gather capital for startup and it would also save you from selling assets as you have said.

 

[Shigobad20201]

If you want to take up a loan to start a business then you can be sure of getting almost enough and adequate funding to cater for all three things that you need and you might not settle for less.

The best advise is not to start a business with a loan , but If the loan is your last resort , always take enough loan that will allow you run the business and at the same time return the money instalmentally.

 

[Heatman]

Well, I believe that it's something that has to do with having the capital needed to start a new business is the major factor why most people seek for such loans to start their business.

 

[Good-Person]

Very true, the only Advantage I see in taking loans is the fact that startup would not take time. Unlike a person who is saving up to start the business or a person who has to work hard to gather capital for startup and it would also save you from selling assets as you have said.

I do not think that it is a wise decision to take loan during the initial stages of your business. It is preferable to start small rather than risking your property as a mortgage to a bank or any institution that provides loan to people.

 

[eLdavis]

I do not think that it is a wise decision to take loan during the initial stages of your business. It is preferable to start small rather than risking your property as a mortgage to a bank or any institution that provides loan to people.

This is what many persons are not aware of, they tend to feel it is a crime to start small. Most big businesses we see today actually started small and they where able to grow it. Some who even go into loans have other ways they can raise up money for their start up but they feel it would take too much time, hence they go for loans which they believe is quicker.

 

[tyrim88]

Taking loan to start your business would help you to estBlished your business but taking a loan to start a business can be very risky.if the business could not yield profit, how will you pay for the loan..However, you should never get a loan that you cannot pay back

The advantage of taking a loan to finance a project or an idea is very important for a business that want to grow to a particular level.But it would be a loan that one has already known his revenue and income over some period of time.

 

[Kubiat-Abasi]

I don't think I'll take a loan to start a new business trying to be stable. I will only opt for loan if it is without interest. In all, I prefer saving to start up even if it's in a small scale.

 

[Senator]

You may be tempted to see or call the sudden availability of money the loan collected would have served you, but I do not call that an advantage because there is nothing advantageous about collection of loans to me

 

[Sotherefore]

Personally I do not see any advantage in this because there is a high possibility that you may not be able to pay back the loan you have collected which can lead to serious trouble and sometimes violence.

 

[Kubiat-Abasi]

The only advantage of taking a loan to start a business is that; it will keep you focused, determined and goal oriented.

 

[Ghost1]

TO be honest I can't really see an advantage of taking loan. Apart from the fact that it'll enable one to carry out his business almost immediately

 

[Josan]

Advantage of taking loan to start a business, yeah at times people are scared taking loan from the bank to start their business. The reason may be that at times they are not sure of themselves as regards they want to investment and at times the interest they will pay. But the advantage is that if you know the business that you are investing in, you'll cash out and repay.

 

[Stnicholaz]

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.

The only advantage of taking alone is you are 100% sure the business will yield returns quickly enough to pay back the loan. Apart from that the disadvantages outweigh advantages.

 

[Jhayms07]

Well taking a loan to start a business has it's advantages and disadvantages. But there are so many businesses that got their capital through loans and they are still doing very fine today.

 

[Nsisong]

It helps you to do what you didn't have enough money to do. Instead of starting small you start your business big at once and set up everything with ease without having to worry about not having enough money .

 

[Setho]

If you want to borrow money to start a business then you can be rest assured that a lot of people will see the business as legit given the fact that you are borrowing from a recognised financial institution.

 

[Toyoabasi]

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.

The only advantage I see in getting loan to start a business is that it came through as a 'saving grace', letting you kick start your business when there was no other alternative or source of funding to turn to.

 

[Adebayonle7]

I am sorry to say that there are no advantages in taking loans to start a business, irrespective of the interest rates, you may have to use your profits to service the loan and this is not good for business, such business can be crippled, your profits should go back into the business and not for other purposes.

 

[Ellamma]

As had as starting a business with loan may be, it is beneficial too. It helps you remain focus knowing you have a target to reach at a limited time.

 

[Ezekiel]

The advantage of taking loan to start up a business is that it will limit the length of planning and saving frame of getting money to start the desire business