Advantage of taking loan to start a business.

[GIFTMICHAEL]

When you're not sure about the business you're starting up, you shouldn't by any means try to engage on taking loans. Remember, theur is karma, when the funds isn't well utilized.

 

[Setfragil]

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.

Taking a loan is not totally a bad idea especially when we have exhausted all other means of getting funds for our business. We just have to be very sure that the business that we're taking the loan for will yield profits that can pay back the loan as at when due.

 

[Kingsley]

Honestly I am not a fan of borrowing money to start a business mostly in a country like ours that the currency keeps depreciating on a daily basis, but if one is left with no choice other than to borrow I will say it will only help to start the business that is the only advantage and it will help instil discipline.

 

[Kane]

Taking a loan is not totally a bad idea especially when we have exhausted all other means of getting funds for our business. We just have to be very sure that the business that we're taking the loan for will yield profits that can pay back the loan as at when due.

That's correct. If you are short of funds and if your business is already doing well, you cna get a loan, invest in your business and yield higher prodits.

 

[Sotherefore]

I do not see any economical advantage of taking a loan to start up a business because a loan itself is a slave to people who took it and sometimes it may be difficult for you to pay back what you borrowed to start up a business, it is always advisable for you to start a business with money you generated genuinely.

 

[Razor1911]

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

But for a bigger businees it is important to take loans. Large busineeses run in support of such loans only. As an individual you might think like that, but companies are taking loan regularly and investing those into the market.

 

[Heatman]

Personally, I don't really know if there is anything like an advantage in taking a loan to start a business apart from having the cash available at hand. Minus this, there is no advantage I see.

 

[Kinglegend01]

Although the disadvantages or the problems of taking a loan definitely outweighs the advantages but I think an advantage of taking loans is the acess to money when you actually need it.

 

[eLdavis]

I would advice you not to start a business with loan. Anything could go wrong, we dont pray for that but we know not all business goes well at the beginning. What if you fall under such category? How do you pay back the loan
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Although the disadvantages or the problems of taking a loan definitely outweighs the advantages but I think an advantage of taking loans is the acess to money when you actually need it.

True but i think one should consider how to pay back before taking loans. Your options should be considered

 

[Kunkun]

Well one of the advantage I can see in taking out a loan to start a business is that depending on the amount of the loan it can help fund the business since that's the intention to begin and can also be a motivating factor because you know you will run into debt if the business fails

 

[Ralphjoe]

The only advantage that I can say when someone apply for loan to start up a business is the fact that you can pay back this money when the loan is due.

 

[Sincerem]

But for a bigger businees it is important to take loans. Large busineeses run in support of such loans only. As an individual you might think like that, but companies are taking loan regularly and investing those into the market.

What did you call them companies?? Those business enterprise are very lucrative, they share their shares steadily, also they have external businesses elsewhere other than their company. They borrow money to invest in somewhere, get huge profit and repay back.

 

[Razor1911]

What did you call them companies?? Those business enterprise are very lucrative, they share their shares steadily, also they have external businesses elsewhere other than their company. They borrow money to invest in somewhere, get huge profit and repay back.

Yes, we call it company or financial institutions. Any big market player has to take loan to start a business. Even an entrepreneur, who wants to grow his market will need funds to do business, and hence loan is the only option for them. Otherwise where they will find such a huge sum for their Buisnesses.

 

[Shigobad20201]

The only advantage that I can say when someone apply for loan to start up a business is the fact that you can pay back this money when the loan is due.

The only advantage of taking loan to start a business is for you to use it for the business you are trying to create , and I don't see any good thing in starting a business with a borrowed money.

 

[Sincerem]

Yes, we call it company or financial institutions. Any big market player has to take loan to start a business. Even an entrepreneur, who wants to grow his market will need funds to do business, and hence loan is the only option for them. Otherwise where they will find such a huge sum for their Buisnesses.

At times loan is essential when we have proper plans to invest the money rightly, and believe that we can make better use if the loan to meet up its repayment interest and make profit too.

 

[Alexandoy]

The only advantage of taking loan to start a business is for you to use it for the business you are trying to create , and I don't see any good thing in starting a business with a borrowed money.

Maybe you forgot that the only advantage of taking a loan is when your business is expanding. For starting up it is never a good thing to borrow money because of the repayment. That responsibility will always be on the back of your mind such that it can disturb your concentration on the operation of your business.

 

[Richard92]

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.

one basic advantage of taking loan in starting up a business if it helps and assist you to start up a business very fast. And also help the business investors who have a enough capital in starting of his business.

 

[Kelly5]

The only advantage I can say involved in taking of loans to start a business is that, you now have the funds and capital to finally start that dream business at last. But I'm not a fan of taking loan at all

 

[Bookwormlux1]

I have never thought of that advantage of making you more serious with your earning. It is really true, you will work hard in order to pay back the loan before the interest is too much.

This is actually the case for someone who's interested in paying back, but there are people who don't have plans of repaying loans so they don't feel the need to work hard because of a loan they have in mind to repay.

 

[Razor1911]

Maybe you forgot that the only advantage of taking a loan is when your business is expanding. For starting up it is never a good thing to borrow money because of the repayment. That responsibility will always be on the back of your mind such that it can disturb your concentration on the operation of your business.

But you can not know if your business will expand or not until you try it. If you don't take loan in the fear of repayment then you can never take a step forward in your life. Yes, it has risk, but you should have self confidence before, taking such loans to be able to repay with interest.