Advantage of taking loan to start a business.

[Dowenship]

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.

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 loan is never the best way to start a business, because not all business start on a positive note, so if the business could not yield profit, how will you pay for the loan..

 

[Meerab]

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

 

[nimzy]

To me starting a business with a borrowed money or loan is not quite advisable or to say it has any advantage to mr it is all disadvantages because you will definitely be stressful in other to pay back the loan credentials so to me it is quite all disadvantages.

 

[Sotherefore]

well I personally did not see any advantage in taking a loan and starting up a business because the race that involved in such business might be too much and sometimes it might lead to overthinking if thinks seems to turn the other way round, this can easily lead to high blood pressure and order health related issues.

 

[ahmedo24]

If you're starting a business you don't really have much experience on actually taking a loan could be so depressing especially if you're not meeting up your target so that is why the best is to start first with your money then take loan to boost.

 

[btaliat]

There many be many disadvantages of obtaining loans to start a business but that doesn't mean there is no advantages of taking loan to start. Among the advantages is it will make sure that we are very deligent becssue we will want to repay the loans

 

[Saqibraza]

A bank makes a loan to a business based on the value of the business and its perceived ability to service the loan by making timely and full payments. Unlike equity financing, where the company issues bonds, banks do not own any of the companies they fund.

 

[ahmedo24]

Actually bank don't like giving out loans to business beginners they prefer those who are already into the business and needs loan for expansion because their ability to pay back is always very important factor by bank.

 

[Patrik]

it might save you time to gather funds on your own, but trust me, they are still not the perfect solution, as if you don't know if your business will succeed or not

 

[Sheyemanu]

Well, in reply to your question in the above post concerning how a loan is advantageous in business, i would like to say this is a tough question and I feel that taking a loan to start a business is advantageous because you didn't have capital now you do

 

[cowantussie]

Business loans serve as a powerful tool to help fund, launch, and grow a small business. As a small business owner, you may be looking to secure financing to maintain business operations, expand locations, invest in new equipment, or hire more employees. A business loan helps you achieve all this.

 

[Razor1911]

Taking loan is not an advantage in anyway. You have to pay the amount with interest after specific time. When yoh invest the money you lent from someone, you are more liable to take risk as losing that money means you have to pay yourself all the amount.

 

[Richard92]

There are advantages and disadvantages of taking loan to start up a business 1 advantages of taking loan is it help you to fasting and implement your ideas, it gives you the required capital another for you to start up your business remotely.

 

[tyrim88]

It depends on the level the business has already been before taking such loan.If its a new start up,it does not have any advantage,because the business has not really understand how the terain trully is.Except the business has been running and you know the profit margine over a period,then for a project of expansion,you can go for a loan.knowing that you can repay back

 

[GIFTMICHAEL]

Taking of loams is still productive to those who knows the best way to invest it and make the repayment money on time, and not breaking the deadline.

 

[Shigobad20201]

I have always been a preaching who always preaches against borrowing money for a business start up , unless the money if from some organisation that doesn't want any interest but just lending you to start the business. So to me there's no important of borrowing money to start a business.

 

[Setfragil]

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.

It is not totally a bad idea to borrow money to start a business. It depends on how you can judiciously use the money for investment to make profits that will be enough to pay back the loan taken from the bank or other financial institutions.

 

[Chibson]

I usually don't advise people to take loan when starting a business. The kilos when starting business can plunge into financial crisis and of course make your business to crumble. But there is nothing wrong in taking loans when your business has established but needs little funding.

 

[Fizzy_boi]

Loans can be much more advantageous on starting a business actually ones you are ready and determined about what you borrowed it for and your aim and goals are fit.

 

[Shigobad20201]

Loans can be much more advantageous on starting a business actually ones you are ready and determined about what you borrowed it for and your aim and goals are fit.

Theirs no advantage in taking loan to start a business as I have been taught by the elders , the only way you can borrow money to start a business is when there is no interest in the money you are borrowing.