Finance Advantages of funding your business with bank loans

Augusta

VIP Contributor
The truth is that you can get your business funding from diverse ways but with bank comes more advantages than other sources. You would enjoy better bank loans because of the below importance.

Business growth is eminent:

With bank loan you would be able to take out your business plan without delay. If you needed millions to expand your business or start it, With the right collateral you would be able to start almost immediately. This is because the bank would offer you the loan as soon as possible.

Keep control of your business

Unlike other financing ways like equity finance, you would have to sell shares to the general public which when bought the buyers become co-owners i.e. share holders in the business. so you no longer have a full control over your business.

Lending from a good reputation

Banks always have good reputation, because they need to maintain their name and customers. so borrowing from banks will give you the integrity you need. So you wouldn’t need to be scare borrowing from them

No bank interference

With bank loan comes no restrictions or limitations on how you run your business, when once you are meeting your repayment plan. You are going to run your business smoothly. Even if you want to change your business plan you can go ahead provided you are making your repayment

Benefits other services from the bank

You would be offered other extra services from the bank like provided with personal advisor that will help you scale through the repayment period without hassles

What other benefits do you think can be derive from getting loans from banks?
 

Mataracy

VIP Contributor
I believe that borrowing from the banks will also give one more opportunity to get the money on time so far the documents require from the bank is completed.

Another advantage's of borrowing from the bank is that one can still get advice from the bank how to utilize it in a better ways so that one will be able to do well in the business.

I believe if one pay the first loan very well and the bank now sees an opportunity they can call the person and allow the person to enjoy the benefit.
 

Immilash

Verified member
That's great. But for me I don't think if it will be a great idea because I'm not the type that takes loans be it from family members or friends, I just try to have enough before I start anything but taking a loans won't be a great idea. but if you are ok with loans you can take them and you won't have problem.
 

Kingsley

Valued Contributor
Your points are so valid mostly when the person establishing the business has done his or her home work very well. The person must have seek the face of God and have gotten approval, and the person must have been into the business for some years and gathered enough experience. Because business has a lot of risk and life generally is so full of risk. Anything can happen at anytime so one must have put everything into a very serious consideration before embarking on such loans otherwise it might spell doom for anyone who wants to access bank loans the interest rate is enough to cause catastrophe to the business.
 

Mika

VIP Contributor
There are a lot of benefits of funding your business with a bank loan, but in order to do that you need a couple of things, for example, you need fixed asset to give as colleteral, your businesses should be a registered business with a proper business offic, your business should be already be functional business.
 

btaliat

VIP Contributor
These opinions are so valid that I don't even want to refute any of them. But personally, I don't like it support funding business with bank loan. I can only encourage expanding business with bank funds. I do believe that no one know the direction of business and funding it with bank loans may pose a great threat if the business goes a wrong way.
 
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