Advantage of taking loan to start a business.

[Kane]

I took a loan for my brick and mortar business and I failed. However, this does mean everyone who takes a loan will fail. In fact my brother in law funded his business through a loan and he not only paid back the loan but was able to build another business.

 

[Sincerem]

I never in support of loan cos of the hard time that comes from it, when it comes to repayment.

 

[Kane]

There is a risk of getting a loan as you might have to start repayment before you earn, however, if you do not have money to invest on you business loan can help you to get started.

 

[Sincerem]

Their are people well acquainted in borrowing for business, but i never liked such. Instead i save for years till i achieve my goal.

 

[Justin]

I don't think you should be afraid of taking loan for your business if you are serious about your business.

 

[Kane]

That's correct. If you do not have money to invest, you can get a loan. If your business needs fresh investment, you can get a loan. However, you should never get a loan that you cannot pay back.

 

[Mostee501]

Without adequate capital for any business you want to venture into and without partnership the best option is taking a loan because without the loan, there will be no start of business.

 

[Justin]

That's correct. If you do not have money to invest, you can get a loan. If your business needs fresh investment, you can get a loan. However, you should never get a loan that you cannot pay back.

In my opinion, you should first invest your own money. And you should get a loan only when your already running business needs additional investment.

 

[Kingzy43]

Making use of loan for business requires very keen seriousness to pay back the loan with interest, so I think its a cool idea

 

[Senator]

taking a loan for a business is not bad. But I see it bad for someone who has got no experience at all first hand in that business order than his research to be in a very bad position to be taking loan. That business may not turn out as he thinks

 

[ahmedo24]

taking a loan for a business is not bad. But I see it bad for someone who has got no experience at all first hand in that business order than his research to be in a very bad position to be taking loan. That business may not turn out as he thinks

That's true because despite research and feasibility studies, having a first hand experience in a business is very important before taking loan to finance or expand the business.

 

[FreshKaz11]

One best advantage I see about taking a loan to start up a business,is that it makes one focus on the business and I try to pay back the loan when the due time. So if there is no capital to start up a business I would advice to go for a loan tho.

 

[Trexxxy]

I agree I think the loan will make you more strategic and prudent on the best means to utilize the loan to be more productive and profitable.

 

[BrolySSJ]

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 think that you are right in the sense that we will be more to come and because we have to pay back a loan rather than if it was our own money and would not be affecting anyone else apart from ourselves. However this also increases the risk quite substantially and therefore this can also lead to less risks being taken within the business.

 

[Eodine]

Getting the money needed to start a business as always been a challenge for most businesses, getting a loan solves that challenge as the business can start operation.

 

[Bookwormlux1]

The perspective you are talking about is true. Any serious person would work harder knowing that it was borrowed money that was used to start the business. But some people never get DISCIPLINEd to that extent.

 

[Damscooguns73]

Concerning advantages of taking loan to starting a business. Well, I would say that for every disadvantage, there is always an advantage also. I would only advise one to go into acquiring of loan when you are triple sure of the business and probably if you had a running business that ran out of funds but has potentials.

 

[richee84]

Loan have it own advantages and disadvantages depending on how it been use. Loan has a lot of advantages if it is use for the purpose it been collected for. Loan can be use to expand business if the loan is genuine use for the business.

 

[Sotherefore]

I don't see any advantage of taking a loan to start up a business except you are hundred percent sure that the loan you are taking to start of the business will be paid back within one year without it affecting your company and to me it is not always advisable because the risk is always so much especially for new business.

 

[Shigobad20201]

I don't see any advantage of borrowing money To start a business , its better to start with the little you have than borrowing, you can only borrow to expand your business.

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.