Consequences of using credit facility to run a business.

[Danny4cash]

I agree with the point you made. Starting a business with a credit facility will put a lot of pressure on the owner. If the business fails, the owner will bear the brunt. I can't advice anyone to do it.

 

[joy101]

My own opinion is that it is better to start up a business with your own funds no matter if you have to start small. However, when the business is now on solid footing with customers and generating profits, you can take a low interest loan for the sake of expansion.

That is true I don't even like the idea of taking a loan to start up the business by my own funds, because is good to start up with small instead of taking a loan because loan are not easy to pay back when the time comes to pay back, that is why I don't like the idea.

 

[Chibson]

That is true I don't even like the idea of taking a loan to start up the business by my own funds, because is good to start up with small instead of taking a loan because loan are not easy to pay back when the time comes to pay back, that is why I don't like the idea.

Actually, there is nothing wrong in taking a loan to start a business if you have a very good plan of paying back. But in a situation whereby you do not have a very good plan or business experience taking a loan should not be considered.

 

[Shigobad20201]

Starting a business with a loan has its advantages as well as the disadvantages , but the disadvantages is much more in the sense that you might loose everything If you failed to pay your loan on time .

 

[Syldan]

Well stated, I agreed with your assertion because everything has both advantages and disadvantages. The loan can be very difficult to pay when the business could not succeed and it makes us to be more active to be able to pay back the loan.

 

[Shigobad20201]

Though there's nothing bad in using a credit facilities in running a business , but the best thing is to have a counter measure on how to repay your loan back on time .

Actually, there is nothing wrong in taking a loan to start a business if you have a very good plan of paying back. But in a situation whereby you do not have a very good plan or business experience taking a loan should not be considered.

 

[joy101]

Actually, there is nothing wrong in taking a loan to start a business if you have a very good plan of paying back. But in a situation whereby you do not have a very good plan or business experience taking a loan should not be considered.

I know that there is nothing wrong of taking a loan to start up a business but for me personally I don't really like the idea of doing that, I like to save before thinking about going into business.

 

[Godspower]

I know that there is nothing wrong of taking a loan to start up a business but for me personally I don't really like the idea of doing that, I like to save before thinking about going into business.

Loans would always put a businessman under intense pressure. If the business doesn't succeed as expected, the person might struggle to pay back the loan collected at the due date.

 

[Chibson]

Though there's nothing bad in using a credit facilities in running a business , but the best thing is to have a counter measure on how to repay your loan back on time .

Probably, this is exactly what I have stated before. If you have proper plans for paying the loan back on time then there is nothing wrong for you to take it. It is also important to have enough knowledge of the business you are going into.

 

[Shigobad20201]

I remembered when i borrowed some amount of money to boost my business ,mi was really under a lot of pressure because the market is not really good at that time and i dont have any where to get the loan repayment .

Loans would always put a businessman under intense pressure. If the business doesn't succeed as expected, the person might struggle to pay back the loan collected at the due date

 

[Godspower]

I remembered when i borrowed some amount of money to boost my business ,mi was really under a lot of pressure because the market is not really good at that time and i dont have any where to get the loan repayment .

Loans always come with pressure. If your business isn't doing well, you will be under extreme pressure to source for money elsewhere to settle the loan and this might lead to you even borrowing further.

 

[Shigobad20201]

Fear factor and the anxiety thinking about what might happened if you can't meet the deadline of the loan payment while loose focus on the business is one of the disadvantages of using credit facilities to run a business.