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

[Rimsha kanwal]

I beleive we’re saying the same thing and our points align. Veteran business owners will tell you loan is the best way to start up a buisness. Interest is an ideal way for the loaner to make profit and rewarded for the risks they’re taking. I’m very pleased with your point 🍺

Money is the most tangible investment in your company. Unfortunately, sweat isn’t worth its weight in gold until it produces money. I suggest you get traction first and show that your product can make money, then you’ll have more leverage at the negotiating table. A person with money invested will want to see returns quickly, which could be to the detriment of good, timely decision-making.
[automerge]1611426487[/automerge]

I beleive we’re saying the same thing and our points align. Veteran business owners will tell you loan is the best way to start up a buisness. Interest is an ideal way for the loaner to make profit and rewarded for the risks they’re taking. I’m very pleased with your point 🍺

Money is the most tangible investment in your company. Unfortunately, sweat isn’t worth its weight in gold until it produces money. I suggest you get traction first and show that your product can make money, then you’ll have more leverage at the negotiating table. A person with money invested will want to see returns quickly, which could be to the detriment of good, timely decision-making.

 

[Imkevin21]

It is okay to acquire a debt to put up a business but I would advice for him to earn his own capital first before venturing to the business world. Borrowing after building and introducing the business is better because as a creditor you have the assurance. You also have the choice to use your skill to provide a service as your business capital. To be exact their is what they call business form, Partnership where you could be industrialist instead of a capitalist.

 

[Kamon c4]

Money is the most tangible investment in your company. Unfortunately, sweat isn’t worth its weight in gold until it produces money. I suggest you get traction first and show that your product can make money, then you’ll have more leverage at the negotiating table. A person with money invested will want to see returns quickly, which could be to the detriment of good, timely decision-making.
[automerge]1611426487[/automerge]

Money is the most tangible investment in your company. Unfortunately, sweat isn’t worth its weight in gold until it produces money. I suggest you get traction first and show that your product can make money, then you’ll have more leverage at the negotiating table. A person with money invested will want to see returns quickly, which could be to the detriment of good, timely decision-making.

Well you’re right. You need to be sure of your products to some extents( you know can never be 100% sure of making profit). If you’re not sure of the business it’s not advisable to procure a loan tonstart a business.

 

[Ryeetar]

It is more advisable to start up your business with your own capital no matter how little it is, there is no harm in starting up small. But you can actually get a loan from a bank, if you are really serious about the business and ensure to pay back within the stipulated time hence increase in interest which may affect the business.

 

[Hammad1245]

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.

Yes you are right. A man should only get loan if it is without interest. Interest on loan will make you disappointed. If you get a loan without interest you can start with it. Bank loans are not advisible. If you do not get loan with out interest conditions. Start business on small scale with the available money.

 

[Kehinde]

There is no rule of thumb to use when determining whether a startup should take on debt. Debt can often be faster, easier, cheaper and less of an overall headache than equity. Understanding your business needs and how effectively you will use capital can determine if debt is right for you.

 

[Sariana23]

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

It is true, the mind is focused on the debt, the interest, that the payment date is approaching, and you should have the mind on producing more to invest, even if it is from below but with the mind clear of bank debts. Even if the loan is so necessary it is better to ask a family member or friend.

 

[Profuk57]

Personally I will say no, not because it is bad per say but I don't like personally. When you collect loan it put you on the edge it make you disoriented and lose your focus hence i will not advice it for any one

 

[Chumzy]

If you have a business idea that can solve a problem which you know people will pay for. There is no harm in taking the risk of procuring a loan to help you start it. But for me it is best to take a loan for expansion rather than start up.

 

[Eamodu]

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?

Taking a loan to start a business is risky, but if you don't take that bold step in taking that risk, then you may possibly not know how successful your business would have been if you took that risk. Please advise your friend to take that risk if he is sure of the clothing business. Many people became successful in business after collecting loans to start their business.

 

[Niftyyem]

Yes you are right. A man should only get loan if it is without interest. Interest on loan will make you disappointed. If you get a loan without interest you can start with it. Bank loans are not advisible. If you do not get loan with out interest conditions. Start business on small scale with the available money.

That would be my exact advice to such a person. It is better to start very small and only with what you have saved up than take up loans that could end up killing the business just started. Even the tension and stress could affect the business owner mentally.

 

[Axad. Mrb]

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?

Because debt doesn’t dilute your company, debt capital is a great choice for many startups. One downside to debt is its lack of added value. Although venture capital funding leads to connections, networking opportunities and mentorship, debt funding is money only — no added benefits. For new startups looking to build their startup ecosystem and gain valuable support, this can be a real concern.

 

[LaylaG]

I do not actually support that because if you think of securing a loan to start up a business you do not know if the business is going to succeed or not I think you are at risk of going to jail if you do so because there is also a possibility that the business can crash or collapse

 

[Senator]

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?

To procure a debt to start a business is a high risk option. If the debt is from a friend or family without interest is a little better, but if it is from credit companies or bank it is high risk.
No matter his you planed your business, its a different ball game when you hit the ground. From my own part of the world, government inconsistent policy alone can being to kill your business before even taking off. I strongly advice to keep off loan for start ups

 

[Kane]

There is no problem to start a business with a loan. However, if you already have a debt, you will have to think twice before you get a loan for a new venture. Financing your business entirely with a loan can also cause a problem because you have to start repayment before you begin to earn.

 

[Quert]

I guess they should have taken an advice from a financial expert or get a financial plan to set goal from their current action . It is much better to have a well planned action before entering a new one in order to avoid such problems from occuring again.

 

[iamgroot]

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?

Diving is business is risky, specially upon starting, you tend to lend money bexause you dont have the statup capital, just have a great mindset and you will not fail.

 

[Nma]

Getting a loan to start up a business is not a good idea... He should look for other ways to raise capital maybe he can ask family and friends and also take up menial jobs that would help him raise money to start his own business.... Taking a loan will put a lot of pressure on him which is not good for a beginner in business

 

[Aniwhyte]

I would never take a loan for anything no matter how urgent it is, instead I would find any means possible to borrow the money from a family or a friend, I won't even advise my friend or anyone around me to take a loan.

 

[Hdre3m3n]

It will be advisable to persuade him not to go for the loan because of investing in the business you haven't establish is very risky.Instead of collecting a loan that you are sure of repaying back why not endure and save the money to establish.