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

[Sincerem]

In my country Nigeria getting alone from banks to start a business can be very frustrating and no go area if you don't worthy guarantors or collateral. So it is not advisable to get a loan from the bank. trying to pay back the loan will affect the smooth running of the business.

The stress attached with trying to get a loan from a bank has been reduced to some extent if you can be able to get the desired requirement then the bank would give you a loan without stress.

 

[zelalem]

I don't think it's wise to take out a loan as capital to start a business. Although a source of other means of maintaining your capital, business capital loans nevertheless make you uneasy, which makes it feasible for your business to repay the loan on time. I guarantee that.

 

[Shigobad20201]

Though its not advisable to set up a business with a loan but if you have the capacity of returing the loan within the stipulated time given , then theres nithjng bad about starting a business with a loan.

 

[Mildred254]

It is not a good idea for me, I prefer saving up for my business. The problem with getting a loan is that you put yourself in a tight position. If you business does give you much profit as you expected you will be frustrated. You will have to repay back the loan even if the business is not doing well. For me I prefer I just work and save money then I start a small business that doesn't require more money.

 

[Sincerem]

We might not be praying for your business to fail. But what if you are not able to pay back the loan you have collected because of business failure , how will you be able to repay it back ? . if you have an external source of paying back the loan then obviously you can get a loan to start up any business of your choice.

 

[Smiles20]

A good number of the businesses that we are seeing today have collected significant loans at various crucial points in their cycle and the most important thing is just what you do with the loans.

 

[Ezekiel]

Getting a loan to start a business is not a bad thing but sincerely the ability to stick to term and condition makes its look inappropriate because if one cannot stick to the terms he or she might be arrested

 

[jordans]

most of, on the off chance that you're fair beginning out or in case usually your first business, begin the trade together with your money . The most reason for this being the more noteworthy level of hazard, duty and involvement that you simply are expecting for yourself. Anybody can get a credit. But not everybody can run a effective trade.

 

[joy101]

Hmm getting capital to start up a business us quite frustrating in the part of the world but still won't advise anyone to start up a business with a loan.

For me is not really advisable to start up a business with loan I don't like the idea of taking a loan to start up a business, it can be frustrating some times to pay back the loan, that is why is really good to save before going into business.

 

[Kelly5]

I can only advise you to take this step as the last resort if all mother avenue for getting the required funds for the business fails. But if you can be patient enough to wait it out to accumulate these funds via other means that might take a little time, then don't go for the loan.

 

[Dora Wi]

I think other options should be considered first such as whether there are any grants available or any investors who would be willing to invest. However, if you have a sound business plan and have thought everything through very well, and you don't have the funds to set up the business, you may need a bank loan. I don't think it is necessarily a bad idea, but you need to have a plan B on how you would pay it back if things don't work out.

 

[Robust]

It is very very adviceable to start up a business with a loan, the only thing you need is to know the business you want to start, it should be in a good location and that business should have a concerte business plan.

 

[Chibson]

there is nothing wrong with starting a business with a loan but it is important to have proper knowledge and experience of how such a business works. You should also have adequate plans to be back within the specified time.

 

[Godspower]

there is nothing wrong with starting a business with a loan but it is important to have proper knowledge and experience of how such a business works. You should also have adequate plans to be back within the specified time.

I don't think it's advisable to start a business with a loan. You might struggle to repay the money you obtained if the business doesn't succeed as expected.

 

[Chibson]

I don't think it's advisable to start a business with a loan. You might struggle to repay the money you obtained if the business doesn't succeed as expected.

There are so many successful busineses that started with loans. If you want to take a loan it's important and necessary to have proper plans of how to repay it.

 

[glitch]

Most businesses start with a loan or some form of debt. It is not a bad idea but you have to be 100% sure of your planning. You do not want to go into a business idea and have it backfire.

 

[Chibson]

Most businesses start with a loan or some form of debt. It is not a bad idea but you have to be 100% sure of your planning. You do not want to go into a business idea and have it backfire.

Probably, proper planning is the most important thing here because without that there is no way you can be able to succeed. So many multinationals you see today were started with loans.

 

[glitch]

Probably, proper planning is the most important thing here because without that there is no way you can be able to succeed. So many multinationals you see today were started with loans.

Loans or "gifts" by a wealthy parent. Paypal was created off the back of the Musk brothers' rich father. Just one example.

Bill Gates used some of his mother's money as well as her influence in a company to start out. Another example.

It happens but it is more rare.

 

[Chibson]

Loans or "gifts" by a wealthy parent. Paypal was created off the back of the Musk brothers' rich father. Just one example.

Bill Gates used some of his mother's money as well as her influence in a company to start out. Another example.

It happens but it is more rare.

That's true, if I get a very good business idea especially tech related, I will probably take a loan but I'll make sure that I have a good collateral. This is because anything can go wrong.

 

[Godspower]

That's true, if I get a very good business idea especially tech related, I will probably take a loan but I'll make sure that I have a good collateral. This is because anything can go wrong.

You have made a good point. However, if you must take loans, it might be better to get it from family members or friends instead of banks. This is because banks and other financial institutions charge very high interest rates.