Advantage of taking loan to start a business.

[ahmedo24]

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

Sure , it is not all about starting a business but how the business can break even and you should be able to pay back the loan as at when due .

 

[Alexandoy]

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.

As what you just said about constantly keeping you on your toes that is clearly putting pressure on yourself. When there is pressure that can create interference in the business and your concentration and focus will be affected. What if your cash flow is getting tight because of the monthly payments to the loan?

 

[Josemendez]

Sure , it is not all about starting a business but how the business can break even and you should be able to pay back the loan as at when due .

Paying back the borrowed loan is the major issue with borrowing loan and also the fear of losing the collateral used in securing the loan. I believe in saving up the desired money.

 

[ahmedo24]

Paying back the borrowed loan is the major issue with borrowing loan and also the fear of losing the collateral used in securing the loan. I believe in saving up the desired money.

That's the best way to start business, with your savings you can start up business and grow it gradually and once you break even in the busineses you can then take loan possibly to expand the business.

 

[Razor1911]

That's the best way to start business, with your savings you can start up business and grow it gradually and once you break even in the busineses you can then take loan possibly to expand the business.

At the beginning, self saving investment is advisable. But the amount in the initial stage should be small, once the business starts growing, after that we can take higher chances by taking loan.

 

[ahmedo24]

At the beginning, self saving investment is advisable. But the amount in the initial stage should be small, once the business starts growing, after that we can take higher chances by taking loan.

of course that's how it supposed to be because by then you would have known your business and you may have break even so you have known areas to invest in a business and possibly know the dull period and boom period

 

[Zevin]

If you do not have the resources to pay back, I think you should avoid taking a loan. You should always think about repayment and you need to concentrate on what I will do if my business fails

 

[Bookwormlux1]

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

Sure, sometimes people just get blinded by the little advantages they know, but when reality dawns, they end up in regrets when it is already too late.

 

[Josemendez]

At the beginning, self saving investment is advisable. But the amount in the initial stage should be small, once the business starts growing, after that we can take higher chances by taking loan.

One takes loan when he or she has observed that his or her business is doing well and thus he will have the confidence to take loan . He won't have any fear.

 

[Sotherefore]

getting a loan to start up a business or anything is something we must never put in our life plan because sometimes it might not work out as we expected,most of these things are just unnecessary risks that can put our lives in danger and depression.

 

[Prettyjanie]

I am finding it difficult to say an advantage of a loan, especially when it is a bank loan, at the end of the day, you don't have anything to show for it as the high interest rate alone would have overwhelmed you.

 

[Jumoke12]

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.

Well, the main advantage of taking loan to start a business is that you have the opportunity to get things done without having had to struggle to get the money by yourself. but it still has several disadvantages anyways.

 

[Haveit]

When one takes a loan to start off a business, then he funds required to start such business is then available which is a great advantage because majority of business do not see limelight because of funding.

 

[Razor1911]

When one takes a loan to start off a business, then he funds required to start such business is then available which is a great advantage because majority of business do not see limelight because of funding.

When we take loan for trading, obviously it will give liquid cash in our hand, which we can utilize to expand our business. But we must know how to manage the funds, as it may get us into trouble if not managed properly.

 

[ahmedo24]

Well, the main advantage of taking loan to start a business is that you have the opportunity to get things done without having had to struggle to get the money by yourself. but it still has several disadvantages anyways.

The disadvantages out weighed the advantages especially taking it to start a new business , the best is strive to start with your savings and expand later.

 

[Haveit]

When we take loan for trading, obviously it will give liquid cash in our hand, which we can utilize to expand our business. But we must know how to manage the funds, as it may get us into trouble if not managed properly.

You get the point, loans can easily land one in trouble especially if one fails to make repayment to the financial institution one took the loan from as they have been known to take drastic actions.

 

[Setho]

In this our economy, it is very difficult to start a business with that amount. But you can always start small and scale it later that is why I advice you start a small poultry farm for eggs.

 

[Shigobad20201]

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.

God bless you for that wonderful comment on starting a business with a loan, starting a business with a loan is not a good ideabecuase its going to affect the business , you can only borrow to expand your business.

 

[Zevin]

Loans come handly when you do not have funds but have a great business idea. However, if you are someone who does not have prior experience, it is difficult t secure a loan.

 

[Sincerem]

God bless you for that wonderful comment on starting a business with a loan, starting a business with a loan is not a good ideabecuase its going to affect the business , you can only borrow to expand your business.

Thanks for the kind gesture. Some persons doesn't know about it, all they care is that, i want to start up a business with loan in the next six month I'll pay back. Without knowing the implications when that business never lived up to its hype.