Is it advisable to procure a debt to start up a new business?

[Eyiteepraise]

Getting a loan to start up a business?
I don't think it's a good idea.
Firstly, how does he intends to pay back? This is a business he just wants to venture into. He doesn't know how the turn up is going to be. It might be lower than the expected amount of income.
And even if the turn-up is great, he would probably use it to pay for the loan plus the interest. Thereby, having little or no profit at the end.
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Getting a loan to start up a business?
I don't think it's a good idea.
Firstly, how does he intends to pay back? This is a business he just wants to venture into. He doesn't know how the turn up is going to be. It might be lower than the expected amount of income.
And even if the turn-up is great, he would probably use it to pay for the loan plus the interest. Thereby, having little or no profit at the end.

 

[Godleads1]

It is preferable to start a business with your own capital, funds from friends or you go into partnership with someone who can fund the business. But starting a business with a loan could later b a ghost to hunt or stagnate the growth or progress of the business

 

[Patrik]

Only when you are sure about the success of that specific business, otherwise, if it fails, you will not really like what is going to happen next, since you will have to pay debts for a businesd that you earned nothing from

 

[Oluwatobitomisin]

It is advisable to procure Loan to start a Business if it's from Friends or Family member, where Interest will not be added to the Principal amount he or she will have to pay but I'll not advice anyone who wants to procure Loan from Banks to start a Business with it.

 

[Chris]

I won't advice anyone to get a loan to start a business, instead save up some capital invest it and use the profit to startup your business, however if he is sure about the profit he'll make and he can meet up with the deadline of when to payback the loan, then he can go ahead, it's a good start.

 

[Adventurer]

I have someone who is interested in the sale of clothes, but he doesn't have any start up capital. He intends to get a loan to get his business rolling, and he seems so sure about repaying it back on time. But I have a bad feeling about this. Is it really wise to go into debt to do business you are just venturing into? I'm not trying to be pessimistic here, but what if the turn up is lower than what he expected? I tried to talk to him about it but he just shrugged it off as no big deal.
Should I leave him to go on with his plan or try to dissuade him?

In business you must be a risk taker to be successful, if he has done feasibility studies of the business he intends venturing into and is sure if the profitability I see no problem in takin a loan. As a friend try to support him whatever the outcome of his decision.

 

[Kiwi]

Well, I will say that he should not bite more that he can chew, he should know much exactly he need to start and estimate of how many months or weeks the business is going to run and yield well to pay back the loan. With everything going on now I wouldn't advise he takes the loan ,covid and all.

 

[Thosynho]

I have someone who is interested in the sale of clothes, but he doesn't have any start up capital. He intends to get a loan to get his business rolling, and he seems so sure about repaying it back on time. But I have a bad feeling about this. Is it really wise to go into debt to do business you are just venturing into? I'm not trying to be pessimistic here, but what if the turn up is lower than what he expected? I tried to talk to him about it but he just shrugged it off as no big deal.
Should I leave him to go on with his plan or try to dissuade him?

Yes you can actually borrow money to start a viable business. However, if you must borrow money let it be from family members or friends. This is because borrowing from the above people will be without interest or collaterals.

 

[Prettyjanie]

Except it is absolutely necessary, I will not advice anyone to start a business by obtaining debt. The reason is because, you are just going into the business and you do not have any idea of what awaits, some people do not succeed in the business they go into, in such a circumstance where the business fails, how or where will you get the money to pay back the money? So for me, the best way to get money to start up any business is by way of gift either from friends or family.

 

[Tayyabah]

I have someone who is interested in the sale of clothes, but he doesn't have any start up capital. He intends to get a loan to get his business rolling, and he seems so sure about repaying it back on time. But I have a bad feeling about this. Is it really wise to go into debt to do business you are just venturing into? I'm not trying to be pessimistic here, but what if the turn up is lower than what he expected? I tried to talk to him about it but he just shrugged it off as no big deal.
Should I leave him to go on with his plan or try to dissuade him?

Yes, like you pointed out, I see too many risks here, that's why I'm concerned about it. But he doesn't seem to care. He is too optimistic for his own good, no proper plan ,no back up plan, nothing at all. Who does that? Definitely not someone as careless as him.

Well you should tell him about that debit is not good as interest is not profitable to start anya buisniss.it's my personal experience.I took loan from bank and startmy buisniss 2years I ran my business on the partnership top and suddenly I got slaped and lost everything just bcz of intrest of loan.this is a curse actually.

 

[Jonaville1]

Well you should tell him about that debit is not good as interest is not profitable to start anya buisniss.it's my personal experience.I took loan from bank and startmy buisniss 2years I ran my business on the partnership top and suddenly I got slaped and lost everything just bcz of intrest of loan.this is a curse actually.

So sorry for your experience. It is so sad that people who genuinely want to start a business to make a living has to undergo all that. And the loan sharks were not helping matters with their outrageous interests. The moment people realize the implications of going into a debt to start a business, the sooner they will source for other options.
For me, a loan is just no no.

 

[gammarays]

Getting a loan to start a business is not bad. He should look for bank or micro finance loans with a very long tenor and cheap interest rate. However he should be disciplined with financial matters and must take loans only when it favours him. Taking a loan puts one into stress and emotional pains. He should work hard to pay off the loan quickly.

 

[Me0w]

I would not advise you to loan to build a business because being in a bisiness is already a risk, whether you will be successful or not. thats is why it is good for business if the money you eill invest is coming from you because if its not successful you will not running for your debt. that is all thank you

 

[mjss10]

If you are seeing a great opportunity and potential about the business you are building up, why not take loan if its needed? Just be sure to take a good loan with a low interest and have a long time payment due for you to manage it properly and successfully. Also, if you take the risk of loaning you should be ready about the consequences and the results that will occur along the way.

 

[Seyesystem]

There is nothing wrong to get a loan for a new business once you know that the business is viable. So many big business that you here there name globally started the business with loan. Once you carry out your market research and feasibility study of the business and you are very sure of the profit projection of the business you can get your loan and start the business. Business involves risk taken I hope you still remember the higher the risk the higher the return.

 

[Ifective]

If one is sure about the fact that the business at hand is going to boom then why not. Getting loans from banks is very important to start up a business. That's why banks make it available to people who have a good business idea on sight

 

[Rainlover207]

He could get a loan if it is from family or friends and there would be no need for paying interests and where there would be flexible payment methods. In the case where this isn't available, he should avoid loans. If he does not heed your warnings, just let him be.
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He could get a loan if it is from family or friends and there would be no need for paying interests and where there would be flexible payment methods. In the case where this isn't available, he should avoid loans. If he does not heed your warnings, just let him be.

 

[singlej007]

I believe the financial loan company is collecting collateral before giving him that loan? If they are, and he his the owner of the collateral then free him, because I believe he should know the consequences of disobeying paying back his loan.. If he do not know, try to educate him. If there is nothing like collateral, I advice him to be very careful since the business is new, which made me believe he has no market base yet.

 

[shakky2]

it is not ideal to procure a debt to start up a business because dealing with business has to do with success or failure it can either be for you or against you so you should always prepare your mind towards that .so if you you start with a loan and the business failed,it will be a problem because mission is not accomplished

 

[Damismiling]

I do not agree with the debts to invest, I am one of the people who thinks that it is better to invest with your own money little by little, when you have enough capital to invest in something bigger, you can do it. But, if you have complete confidence in your success, it is preferable to get the loan with family and friends and not do it in the banks.

I concur, the problem of starting business with loan is that, your mind Will not be settled, you would not be Able to think straight, your mind is always on how to repay, I would rather advice you start little, start with the little change you have to start, since it is a new business