Major challenges to start a business with loan.

[joy101]

if you're starting a business, it's virtually impossible to get a loan from a bank or online lender in your company's first year. Lenders require cash flow to support repayment of the loan, so startups are typically disqualified from financing.

Taking a loan to start up a business depends the kind of business you really wants to start, but me I don't like taking a loan to start up a business I will like to save enough money before going into business.

 

[glitch]

I would say that 85 to 90% of businesses start with some sort of loan and this is why over half of them fail. Debt and poor financial planning! It is sad that this happens so often.

 

[Shigobad20201]

The only challenges when using loan to start a business is being able to pay back the loan , so you must always have a plan of paying back without taking from the business fund if you want the business to be saved .

 

[Kane]

It is easy to start a business with a loan because you have the money and you can invest in any area of your business including marketing and product development. However, the major issue is you will be paying your loan before you actually start generating revenue from your business. Your business will take at least 3 months to generate sales but you will be paying loan in the first month.