uptrendfinancialsignal
Verified member
It is very important to consider some factors before you take loan for the starting business . One major disadvantage is financial burden of repaying the borrowed amount because it can affect the cash flow and the profitability of the business most especially when it is in the early stages. High interest rate on startup loans is one of the problems that they face as well and it will also add to the financial strain therefore making it very challenging to achieve profit and or to also to gain a sustainable growth for the business. Taking loan for a startup business also require providing collateral or personal guarantees which may not be really available.