Is it advisable to set up a business with a Loan?

[Bright7777]

It is only if you are sure of making fast profit because there is no advantage in taking loan to start a business because most times paying it can be very hard.

 

[Expert]

Borrowing money to establish a business is also a viable alternative for retaining firm ownership. A start-up business loan may be the ideal option to finding investors, who may ask for a stake in the firm in the coming years.

It is advisable to get a loan from the bank when a business has passed its beginning stage though. Getting a bank loan means you favor independence and don't mind pay back interests versus giving up some equity of your business for an investor's money.

 

[Niftyyem]

In my opinion, I would never advise taking loan for a start-up even one with very solid ideas, maybe for expansion but not start up. It kills business faster especially if you have to service such loans with high interests.

 

[Mayox25]

There is nothing wrong in borrowing to start a business but due diligence should be done to know the interest rate,the duration of the loan, repayment so as know if it will impact negatively on the business.

 

[Abasiama40]

Most times to an extent this is not good in the sense that if proper knowledge about the business is not gathered and the whole capital should not be sourced by loan.

 

[Elfinito]

You can start a business with a loan but you need to evaluate your possibility of making a good profit out of it.
You have to make sure that the business would work and you would make a good profit

 

[Good-Person]

It is advisable I'll state why. Borrowing to invest as long as you have a solid idea of how to run that investment is the only advised type of borrowing; that way you are expanding your capacity because you're investing on something that would bring in returns for you

My views are pretty different from yours. I do not think that it is a good idea to start business with a loan because if the business fails to succeed, you will get into a great debt and if you do not have the capability to pay back the loan, you will be in trouble.

 

[Josan]

Before going into a particular area of business you must have developed passion for it, now going ahead in accessing a loan for the business means you have to put in your best in making sure the business yield so as to pay back the loan. Yeah, it's advisable.

 

[Skysaint]

No, it's never advisable to do so as it will create unnecessary pressure in you and comes it a lot of risk factors. But people often take loans as their last resort, if you're willing to take loan just make sure you have another means of making repayments in case if anything should go wrong

 

[Abigael]

I think it is advisable to take loan for a business. But only after doing your research and planning really well that you actually know what to do in order to earn profits. Otherwise, looking for other sources of capital is better and more safe.

 

[akinlolu99]

One thing I would not exhort any entrepreneur who is simply beginning another business is to proceed to get an advance from the bank, this is on the grounds that a business you have not run before, the terrian is still very new, and benefit is still uncertain, why start with a credit.

 

[ahmedo24]

I think it is advisable to take loan for a business. But only after doing your research and planning really well that you actually know what to do in order to earn profits. Otherwise, looking for other sources of capital is better and more safe.

Sometimes feasibility studies all research might be showing you a green zone in the business but in reality they are maybes challenges which you may not know from the research so the best thing is you can start little with you honey personal savings to know the realities about the business before taking a loan will be better.

 

[Trexxxy]

A lot of people will come here to tell you that it isn't ideal, maybe that is true because of the stats, one of out of three businesses fail everyday. I think if that is the only option left, why not.

 

[Kane]

If you have a solid business, but do not have funds to start a business, taking a loan to start a business can be consider good, But before you start a business with a loan, you always need a plan B idea in case the business fails.

 

[Joshua Idongesit]

To start a business with loan is depending on what you are planning to do they are some business you start with loan and when you start you can't reach the amount you borrow so what I think if you want to start with loan it must depend on what you are selling

 

[joy101]

Depending on the kind of business you want to start can require to take a loan, but for me I prefer to save money before planning to start a business.

 

[Good-Person]

I have been trading crypto now and I have faced loss. I have always wondered what would have happend if I would have started crypto trading after getting loan! I would have gone bankrupt and swallowed by Debt. Thankfully, I invested my own money and never took loan.

 

[Adebayonle7]

Paying back easily may be a problem, I do not advise people especially start ups to opt for loans when it comes to starting business to prevent you from using the profits to service the loan. It's better to save from your salary to enable you gather more capital, you can always start small too.

 

[Heatman]

Is the idea of starting a business with a Loan from bank advisable??

If it's possible for you to avoid all things that will lead you into securing financial loan to start a business I believe it's the best option but if you don't have an alternative of getting money for your business then you have to make use of what is available for you.

 

[btaliat]

Is the idea of starting a business with a Loan from bank advisable??

I don't think it is really advisable. This is because no one knows whether a business will succeed or fails. But it is not a bad idea to expand business with loan.