Major challenges to start a business with loan.

[Frank]

Paying up the interest rate at the due time is one of the biggest challenges that you can face. One thing that is sure is that you may not always get it easy especially if you are starting new, but that doesn't mean you should give up easily at what you do.

 

[Kinglegend01]

It is not advisable to start a business with a Loan,aside from the fear of failure and you been unable to take some certain decisions for the fear of losing the money, I think even if you are very knowledgable or not that much knowledgeable about the business you want to start, as a rookie in the business world, the best method to source for funds for your business is through personal savings and contribution from families and friends. I think obtaining loans should be left to people who already have an operating business and just wants to push it further.

 

[Abibatabosede]

Starting a business with a loan is not advisable for a business man because you would pay back interest and the profit that is meant to invest more in the business is diverted into the loan payment also it's very risky because business itself is of high risk.

 

[GIFTMICHAEL]

Paying a loan with interest is quite debilitating.
Some loans the interest rate is far bigger than the loan amount sometimes.
Now as a business owner you happen to collect some loan to float a new business it might collapse on arrival.

 

[Abbas007]

Businesses is always a risk which may Make you or break you. But, starting with a loan may harm you badly. Because if you don't have your own money to spend, how can you take a Risk about which you are not sure that it will run according to your desires. To start it up, we need to find perfect market place, large amount of money, area of expertise, and perfect seller.

 

[Kennysplash]

One of the major challenges of starting a business with loan is the fear you have. Try not to start a business with loan because you will have to return it with interest.

If the business has the potential, and you have seen what it is capable of achieving then there should be no fear there. Many people started business with loans and they did fine. It all depends on the business strategy and feasibility.

 

[Ebuka Stephen]

For me starting a business with loans is not bad so long as you are sure that the business is a good one. Starting up a business with loan is very risky , that's why it is good to be sure if the business is s good one and you can except in it.

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[Oliver 20]

Lack of cash flow Managing cash flow is a perpetual struggle for most business owners. According to the 2019 Small Business Trends report from Guidant Financial, 33 percent of small business owners surveyed cited a lack of cash flow as their greatest challenge.This is a constant, regardless of the year,” said Ken Wentworth, owner of Mr. Biz Solutions. It doesn’t matter how many assets you might have as a business owner. “Without cash,” Wentworth said, “you have no business.” Beyond covering major recurring costs like payroll and rent, you also have to pay business taxes, fulfill vendor invoices, and purchase supplies and equipment just to maintain operations.

 

[Alexandoy]

Businesses is always a risk which may Make you or break you. But, starting with a loan may harm you badly. Because if you don't have your own money to spend, how can you take a Risk about which you are not sure that it will run according to your desires. To start it up, we need to find perfect market place, large amount of money, area of expertise, and perfect seller.

Usually a loan would require a collateral. When my brother had his importation business he borrowed the title of our parents' property to serve as the collateral. I was against it because what if the business would not succeed then the collateral may be forfeited and that would leave our parents homeless. Yes, business is a risk but you can lessen the risk if you will plan well on the financing. Taking a loan is a big gamble.

 

[Seun4luv]

Lack of cash flow. Managing cash flow is a perpetual struggle for most business owners. Sticking to a budget. Another common business challenge is budgeting. Marketing. Lack of capital. Unforeseen expenses.

 

[Klashlly]

Major challenge to star a business with loan.
Lack of cash flow. Managing cash flow is a perpetual struggle for most business owners. ...
Sticking to a budget. Another common business challenge is budgeting. ...
Marketing. ...
Lack of capital. ...
Unforeseen expenses

 

[Sammyesx]

Starting a business with a loan is not the best option but seems the entrepreneur has no capital, then getting A loan can also be a motivating factor to make the business successful, if he is very knowledgeable about the business. A loan put a person in a state of mind where failure is not a option because you know you have to pay back the loan, it makes you put extra efforts to make the business successful.

 

[ranaabubakar263]

Your business model should support your growth goals. Staying competitive might require you to approach from a different angle.When investors pay you, they expect to see how you plan to spend their money. They will expect you to spend the funds to grow your business to its next milestone.A bank loan is also a reliable funding option for a small business or startup. You may also be able to apply for government-subsidized bank loans or soft loans.

 

[Jonaville1]

One of the major challenges of starting a business with loan is the fear you have. Try not to start a business with loan because you will have to return it with interest.

There are people that start business with loan and they are doing fine. Not everyone has start up capital, hence the provision of loan. You just have to be sure of what you are doing. Put your best effort to make it work,and you will be fine.

 

[Sotherefore]

To me it is not hundred percent advisable to start a business with loan because you may be at risk of going to jail if the business collapses but it is 100-percent advisable for you to get a loan and expand a business with good future potential,using a loan to start up a business may not be the best option you can ask an economist or business managers they will tell you this, that is what I can say about it .

 

[Optimist1709]

Their are lots of challenges in starting a business with loan. First of all how to repay loan and how to make profits, the more you work on this the better. Loan for a start up business is nice but need strategic

 

[esan]

• Cash flow management
• Hiring employees
• Time management
• Delegating tasks
• Choosing what to sell
• Marketing strategy
• Capital
• Strapped budge
• These and many more are the various problem/challenges that small medium enterprises, even big company faces as regarding starting or running business with loan

 

[Eyiteepraise]

Obtaining a loan to start an unproven business is indeed a bad idea. A business loan will often have worse terms and requires a lot of paperwork. It requires collateral that are sometimes very risky to let go of

 

[singlej007]

Starting a business with loan, depends on the types of loan giving and the duration of re-paying back. Big business can start with loan and survive, e.g Hotel Business, oil and gas business etc... There are also several small businesses that can survive using loan too, depending on the duration of re-payment and the mode and amount payable monthly or so.

 

[Adebayonle7]

It's not just about the fear as you mentioned. Fear is constant though but in this case, the fear isn't it but the reality of the potential threat that the interest on the loan posses at your business. Loans these days are more than burdens. You will have to pay so much as interest that you lose track of even any profit you're realizing from the business and even the loan you're repaying. Interests are now almost the same amounts as the loan itself.