Advantage of taking loan to start a business.

[Shaffy]

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.

This is a great way to go if taking a loan will be necessary. It will help to have proper management of resources so losses can be minimal

 

[Smiles20]

If you are willing to take up loans then you can get a large amount of money that can take care of every department of your business. This is the only advantage I see of starting a business with a loan.

 

[eLdavis]

If you are willing to take up loans then you can get a large amount of money that can take care of every department of your business. This is the only advantage I see of starting a business with a loan.

That's true, but the issue is not even about taking loans, it's about paying back. How can you be so sure you would be able to pay back that huge amount on time?

 

[Kane]

If you fund your business entirely with loan, you will start repaying loan even before your business is properly set up and even before your business is making money.

 

[Abigael]

If you fund your business entirely with loan, you will start repaying loan even before your business is properly set up and even before your business is making money.

That is right. It can really disadvantage a business because it will take a long while before it breaks even. It can also give you so much mental pressure and anxiety knowing that you need to pay back a loan.

 

[Kane]

But getting a loan to start a business can also come as a boon because you have a possibility to materialize your dream business and also make a lot of profits from your business.

 

[Sotherefore]

But getting a loan to start a business can also come as a boon because you have a possibility to materialize your dream business and also make a lot of profits from your business.

But what of the potential risks involve ? do you really think that it is the right thing for us to go into a business for the main purpose of making money without considering the potential risks ?

 

[Toyoabasi]

You are right.
One advantage of obtaining loans is that it helps you start a business at the time you want to.
You won't have to struggle and keep wasting time trying to save up money for the capital.

Sure everything has advantages and disadvantages. Taking a loan to start a business from the scratch is dangerous, because you find it difficult to break even. However, taking loans to start a business has its own advantages. Some of these advantages are:
1. It spurs one to be committed in his business so that he will meet up to pay the loan.
2. It makes one be more diligent in other to meet up the payment of the loan, etc.

 

[kayode10]

Loan can make it pretty much easier for you to jump start your business idea within short time. But it is very important to make use of the loan so that it will be easier to grow the business faster and payback on time.

 

[YERUS]

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.

Yes.
Getting a loan helps business persons to start up their businesses on time.
It also has a way of making business persons put more effort in achieving more, so they can repay the loan.

 

[Kane]

When you are getting a loan for the business, you also need to have a plan B. The plan B is how to pay back the loan if you are not earning from your business.

 

[Elfinito]

I don't think there are much advantage on taking a loan to start a business.
It would only make you work more harder so as to make more profit so you can pay back the loan and still have your business running

 

[Adecyptii]

Using loan to start business has advantage and disadvantages, but the disadvantage seems to be risky,the advantage is that it will make one to be committed in his business.

 

[Kaffyfolla]

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.

Yes,One of the primary advantages of taking out a small business loan is that they typically have reasonable rates of interest. ... However, it is safe to say that taking out a business will attract a lower rate of interest than options, such as lines of credit

 

[Ebro01]

Apart from personal savings, loan is the only way of getting a quick business started. Big investors that I know have succeeded from their business through loans from banks. Both private and public organization are mostly beneficiary of loans from the banks.

 

[eLdavis]

Using loan to start business has advantage and disadvantages, but the disadvantage seems to be risky,the advantage is that it will make one to be committed in his business.

Though I agree with you that a business owner Would want to put in more effort since there is a debt to pay, but don't you think this could also lead the business owner into making more mistakes cause of pressure?

 

[Adecyptii]

Though I agree with you that a business owner Would want to put in more effort since there is a debt to pay, but don't you think this could also lead the business owner into making more mistakes cause of pressure?

Yes its possible but one should not let fear and pressure to over shadow his desire to succeed in his business, once one bring fear in his business thats Beginning of failure, but if I may ask if it happens to be that you not have necessary capital to vesture big business because you have the knowledge to explore the business, and you just have small capital,will you start with the little you have or will you get loan and start the business.

 

[eLdavis]

Yes its possible but one should not let fear and pressure to over shadow his desire to succeed in his business, once one bring fear in his business thats Beginning of failure, but if I may ask if it happens to be that you not have necessary capital to vesture big business because you have the knowledge to explore the business, and you just have small capital,will you start with the little you have or will you get loan and start the business.

Personally if I see that the money is enough to start small, then I would do that. It would be very possible to grow the business from there as well and gain some experience from it as well. Or if I consider it too small, I can simply carry out other gigs to save up and add to it.

 

[Omotayo]

Well a lot of people will tell you that starting a business with a loan is a bad idea. There is an element of truth to that. I think if you are going to start a business with a loan, you have be very calculative and have plans should things go south.

 

[ganibade]

Some people don't like to take a loan because of interest on it. This people prefer to go for non interest loan. Loans assist a business owner to succeed when everything goes wrong for them.