Consequences of using credit facility to run a business.

[mubinadaddy]

Obtaining credit or loan from either commercial bank or cooperative society is a very bad decision why because as a business startup doing that, the repayment will be very hard for you. So instead I will advice you take a job or seek financial help from family and friends.

 

[Ezzyoj]

You are very correct. It is never right to start a business with loan or other credit facilities. Starting a business with loan comes with different types of pressures from the money owner. Sometimes, businesses doesn't go the way we might have planned it. And it might take time to grow or meet your expectations.

 

[Good-Person]

Using credit facilities like obtaining loan from cooperative may have negative or positive impacts. The negative impact includes if the business fails to succeed, the loan may become difficult to repay while the positive impact includes it will make us work harder in order to repay the loan.
Do you agree with my assertions or you have another opinion?

I am always against taking loans for starting business. There are many people who have endured huge losses when they take loans and they are unable to pay the loan back. Moreover, you have to pay interest on loans. I am extremely against interest and loans. It is always much better to earn your own money and then start a small business rather than taking loans!

 

[Donkiz]

Obtaining credit facilities like loan to run a business is good if it's an already established business which you know how to manage properly based on experience gotten from many years of managing the business. It will help you expand the business, increase your stock level and profit. But if it's a new business, loan facility will definitely add additional pressure on the business, and will negatively affect your output, therefore it's not recommended.

 

[Good-Person]

Nothing bad in using credit to run a business if it's utilize very well. Most companies operate on loan's

Most companies operate on loans and this is exactly one of the main reasons why most of such companies go bankrupt when they fail to pay back the loan along with those unfair interest rates. Taking a loan is NEVER a great idea, according to me. What if your business fails?

 

[Sammyesx]

Using a credit facility for a new business is not entirely a bad idea, more so if the business owner does not have enough capital to procure one for himself, the only downside will be the undue pressure it will cause on the business.

 

[Adventurer]

Using credit facilities like obtaining loan from cooperative may have negative or positive impacts. The negative impact includes if the business fails to succeed, the loan may become difficult to repay while the positive impact includes it will make us work harder in order to repay the loan.
Do you agree with my assertions or you have another opinion?

You're right and that's why many people shy away from taking loans to start up their businesses. But if you must make sure you have a water tight business tht is guaranteed to be successful. A company once worked with serviced a loan and was able to make payments on time without issues.

 

[Mostee501]

You have a point there,using credit facilities such as loans to run a business can be very profitable and sometimes it can be very frustrating in the sense that the business is not thriving as expected and the loan needs to be settled.

 

[Lawal]

Credit facility is a medium where by a business makes and enable the public to buy and purchase goods and services on credit.
Using a credit facility to facilitate business will make the business to make sales at a low rate because only few customer will buy with payment and those that do not will surely draw the business to a decline rate.

 

[Shigobad20201]

Using credit facilities like obtaining loan from cooperative may have negative or positive impacts. The negative impact includes if the business fails to succeed, the loan may become difficult to repay while the positive impact includes it will make us work harder in order to repay the loan.
Do you agree with my assertions or you have another opinion?

The consequences of using a credit facilities to run a business by obtainingloans from banks and loan sharks is that you won't be able to concentrate on the work because your mind will be on the loan and if you are not able get the return, it becomes a problem.

 

[Sincerem]

Your exertions are well stated and explained. Their are people who worked so hard after taking a loan to start up their dream business and repay back on time. While some do otherwise. But i don't like the idea of taking loan for business start up cos it will make me take risk i never planned to cover up my debts before it ruins my career.

 

[Dowenship]

Using credit facilities like obtaining loan from cooperative may have negative or positive impacts. The negative impact includes if the business fails to succeed, the loan may become difficult to repay while the positive impact includes it will make us work harder in order to repay the loan.
Do you agree with my assertions or you have another opinion?

There are many disadvantages attached to the use of a facility in credit for example if the business that's being run in the facility is not yielding enough profit to pay of the facility is that gain or los... so is not always advisable to run a business under credit.

 

[tyrim88]

To venture into loan facility to fund a business,especially a new outfit might be very challanging for a growing business.The repayment plan and the intrest acumulated can stress out the business from growing to an appriciable level.It is good to use avialable funds to grow the business before looking for loan facility.

 

[Pastor Samuel]

what is the impact of using credit facilities in the commercial bank of economy use of credit, facilities are effective for business or an individual as. You can start a business with your savings

 

[Shigobad20201]

To venture into loan facility to fund a business,especially a new outfit might be very challanging for a growing business.The repayment plan and the intrest acumulated can stress out the business from growing to an appriciable level.It is good to use avialable funds to grow the business before looking for loan facility.

Venturing into a loan facility to run a business for example a new business that was just founded might really be challenging because you will always be thinking about how to pay the loan back or face the consequences in which you might loose the company in the process.

 

[Cash%]

Venturing into a loan facility to run a business for example a new business that was just founded might really be challenging because you will always be thinking about how to pay the loan back or face the consequences in which you might loose the company in the process.

That is more reason its best for you to plan the amount of loan you want to borrow , before you go ahead and borrow too many loan that might be very hard for someone to repay back , i watch my loan before borrowing

 

[Eamodu]

No matter what, I believe it's better to start from scratch and struggle to the top than to use loans in starting a business. this has ruined many lives.

 

[Nurudeen]

Using credit facility to run a business isn't a good thing for someone to go into because of the interest that normally comes with it. I can only take loan to expand a business I can't take Loan to set up a Business because it can backfire

 

[Ehizzy1]

It is absolutely not a good idea to start a business on loan because you can't guarantee 100% the sustainability of the business. If you start business with credit facility and the business later collapse.

Yeah i understand what you just said a lot of people have made high loss because of they are unable to repay the loss ,before i borrow any loan i will first do some kind of observation

 

[Kane]

If the business becomes successful, taking credit to start a business can be considered a good decision. However, there is a risk associated with credit as you will have t start paying back even before your business start generating revenue.