Advantage of taking loan to start a business.

[Sincerem]

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.

You're right man. It isn't advisable to start up a business with a loan, that's never a good option cos of the risk involve during the early business start up. But using it to expand already established business is better off.

 

[Kane]

I started my business through a bank loan. I failed, and I had to sell my fixed asset to clear a bank loan. You need to be careful about this situation when you take a loan

 

[Kingsley]

Am not a big fan of loans accessment because if things should go down south in thr business that will spell doom, and in business I believe one must consider thr risk more than the profit. But in any case loan is okay if that is the last resort. It will help the investor to be very diligent.

 

[Kelly5]

Financial houses and institutions be it those of the government or those of the private sector can be very tricky when it comes to collecting their loans back. They can actually make live a living hell for you

 

[Alisco]

Getting a loan to start a business can be advantageous if you work within the specify time and hit your target,many people had made it through loan.

 

[cowantussie]

Bank Loans Have Reasonable Interest Rates
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.

 

[Fozzy_boy]

It’s really good and it always help to boost the business especially when the business owner is very serious with his business but the opposite will be the matter if the business is not growing well

 

[Good-Person]

The only advantage is that if you do become successful in business after taking loans, you would earn money. Apart from this factor, I do not consider any other advantages associated with taking loans to start business. But please note that taking loans is always a risky thing.

 

[Kingsley]

The advantage of accessing loan in running a business is that it helps the business owner to run the business with all seriousness, they will put in their best to make sure thr money they collected may be pay back as at when due. It helps business to growh because it promotes diligence.

 

[Setfragil]

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.

It is not totally a bad idea to take up a loan to fund and run your business. When all options to raise capital to establish a business has been exhausted, it is not bad to take a loan to fund the business. A loan to finance a business can only be frowned at when it is not certain that the business will be able to pay back the loan as at when due.

 

[Shigobad20201]

It is not totally a bad idea to take up a loan to fund and run your business. When all options to raise capital to establish a business has been exhausted, it is not bad to take a loan to fund the business. A loan to finance a business can only be frowned at when it is not certain that the business will be able to pay back the loan as at when due.

We are still saying the same thing, funding a business with a loan means a funding a business that you have already established but don't have money to fund it, its different from starting a business from the beginning with a loan.

 

[IamDozzy]

The good thing about getting a loan is that it constantly keeps you on your feet to make more money in order to service the loan taken from the bank. This in turn leads to business growth and seriousness on the part of the business owners and employees.

 

[Ralphjoe]

The good thing about getting a loan is that it constantly keeps you on your feet to make more money in order to service the loan taken from the bank. This in turn leads to business growth and seriousness on the part of the business owners and employees.

I do not completely agree with you because even if the idea that you took a look for the business keeps you on your toes there is still a high possibility of the business collapsing of failing and at the end of the day you might default on your loan which you spell trouble to you.

 

[joy101]

Depending the kind of business that you really want to start up that require to take a loan, taking a loan to start a business is not bad.

 

[Meerab]

Taking loan to start your business always have advantage and disadvantage.... But bank loan would help you, especially when you have not enough money for your dreams and people are not willing to support you so if you have
skills and knowledge but no funds to start a business, bank loan is a great way to get started.

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[Bookwormlux1]

Taking loan to start your business always have advantage and disadvantage.... But bank loan would help you, especially when you have not enough money for your dreams and people are not willing to support you so if you have
skills and knowledge but no funds to start a business, bank loan is a great way to get started.

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True, it is usually not easy trying to get people who would be willing to support you grow your business and I now understand why it is a good option to take a loan.

 

[Kelly5]

If you are the type that seems to be okay and cool with taking loans to start a business, then you have the advantage of not waiting too long to gather capital for that business as the loan would have solved that barrier for you and you get to launch that business straight way

 

[Bookwormlux1]

If you are the type that seems to be okay and cool with taking loans to start a business, then you have the advantage of not waiting too long to gather capital for that business as the loan would have solved that barrier for you and you get to launch that business straight way

The main problem would be in repaying the loan and at the same time, thinking of how to grow your business. It is sure not going to be an easy thing to do.

 

[Justin]

There are a lot of advantages but you need to be careful about one thing, you need to be financially capable to start repaying the loan before you actually start earning.

 

[Josemendez]

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 can see in borrowing loan is that it will help you to be able to start a business when you may not have the money it demands . But the disadvantage outweighs the advantage