Finance Did you start with loan or through savings?

[Abigael]

I am planning to start a business soon but I will not be taking a loan for capital. I have been saving some money for it and that is what I will be using to start the business. If it is not enough then I will borrow the rest from my parents. I really don't like the idea of starting a business with a loan.

 

[Jasmine]

I earned money and built my business through my own earnings. I did not take a loan from banks, I did not burrow from friends and family. I worked hard to earn money, cut my expenditure to save money, and after a while I used that money to build my business

 

[Mika]

I started my business with $1000. I used my savings. I ha saved the money from my previous employment. I built two products and spent some money on marketing. I generated some money through ad sales and then finally sold one of my products to recover my investment. These days I am earning profits.

 

[Jonaville]

I actually can't say it enough, using a loan to startup a business is very risky. Most people think that they will be able to meet up with the payments, but they eventually end up overwhelmed because it will be too daunting. Keeping up with loan repayment and business management plus personal upkeeping will be too much.

 

[Chibson]

Starting a business with loan can be very risky at times even though it favours some people. I have a business idea that I would really like to start next year and I am really saving a whole lot of money to fund it. I don't like taking loans especially for business purposes.

 

[sincerem]

It is good to start with ones saving later you can now applied for a loan to add to what you have to make such business flourish and boom.Getting other sources of income in business make the business owner to be more serious with business.there will be full dedication in such case knowing fully that one is owing a financial organization.

It's better that way, starting with savings is the best. It makes you not to think about too much concerning your loan repayment which is a burden for any starter. Such kind of burden take's us off from the business adequate plans, making us only focusing on the profit aspect and forgetting to set the plans, and strategies to carry the business running for long.

 

[Good luck]

It is good to start with ones saving later you can now applied for a loan to add to what you have to make such business flourish and boom.Getting other sources of income in business make the business owner to be more serious with business.there will be full dedication in such case knowing fully that one is owing a financial organization.

 

[sincerem]

Of a truth, starting a business with loan money is very risky. It is better you save your personal money and start your business on your own no matter how small your beginning may be, you won't end the way you started. But if you start a business with loan money, it may be difficult for you to refund the money as at when due because you may be struggling with your business.

You spoke well dear, it wouldn't be easy to start a business with a loan and make profit very reasonably to repay the loan and it's interest on time. The best is to cultivate that endurance spirit to save and make the capital, start the business up without thinking much about how to repay the loan and generate profit to keep our business afloat.

 

[funmi]

Of a truth, starting a business with loan money is very risky. It is better you save your personal money and start your business on your own no matter how small your beginning may be, you won't end the way you started. But if you start a business with loan money, it may be difficult for you to refund the money as at when due because you may be struggling with your business.

 

[sincerem]

I am planning to start a business soon but I will not be taking a loan for capital. I have been saving some money for it and that is what I will be using to start the business. If it is not enough then I will borrow the rest from my parents. I really don't like the idea of starting a business with a loan.

It's simply nice as you want to start without the idea of taking loan to start your preferred business option. Loan is too detrimental when you ask me especially for new starts up. It is better to go for business which I can afford it's capital saving funds for it within some duration of time.

 

[sincerem]

Majority of people believe in taking loans to establish their dream business. They see saving as hard thing to do to get a business capital. Because it take's time to reach the required amount for those who finds it uneasy to get business capital.

So they decide going for loan, because they feel getting the loan won't take time, It comes one time provided they borrow from the right source. Getting a reasonable amount of money to start your own business when you have inadequate means, is hard. Even the mortgage doesn't offer loan without collateral. Taking the loan without making the repayment on time is detrimental also.


The best way to get a business capital ready is saving it gradually no matter the timeframe, or borrowing from your family, or beloved friend.

 

[sincerem]

There is no one size fits all solution to this question. It depends on any number of variables such as your business model, projected revenue, expenses, interest rates, etc. If you go down the route of loans, it becomes a game of interest rates. I want as much low-interest debt as possible. Cash flow first.

Business cash flow first, when the business has cash to sustain for a period of long time, then their is every possibility of it staying afloat. Taking loan to establish a business for the first time doesn't worth it. It becomes workload for the owner during first time start. Saving is the best in this aspect to start a business first time.

 

[Mandy96]

I wouldn’t advice any entrepreneur to start his or her business with loan. In my knowledge, this could destroy the business because your profits gets to go back to some people who borrowed you the the money, it’s still okay to start with your money no matter how little it is, then you can consider loan later when you have gathered more experience about it

 

[HustlersUniversity]

There is no one size fits all solution to this question. It depends on any number of variables such as your business model, projected revenue, expenses, interest rates, etc. If you go down the route of loans, it becomes a game of interest rates. I want as much low-interest debt as possible. Cash flow first.

 

[Alexandoy]

When it comes to the capital of the business for a start up it is always a risk when you take a loan to augment your funds. The loan is a pressure not only on the cash flow but in your mind there is the pestering thought of what could happen if you couldn't pay back the loan. If your capital comes from your savings then that is the best start up.

 

[sincerem]

That's just it. No one knows what the future holds for any business. That's why it is not good to be starting any business using loans. But in a contrary, it is not a bad idea to expand one's business using loans. Then, one would have known the nitty-gritty of the business, so repayment won't be a problem.

If you start with savings, and at some point your business is marred with financial crisis due to uncertainty which you never expected. You can take loan from the mortgage, anywhere and stand the business from collapsing. You can get the amount of loan back on time cos you've been with the business. And not taking loan during the first time.

 

[btaliat]

You're right, and your preference is what I am agreement with. I don't see myself starting anything with loan. Business should be done having the mind settled and not thinking about repaying a loan nearing repayment due date when the business haven't achieved anything. I just prefer saving it out no matter how long it will take me.

That's just it. No one knows what the future holds for any business. That's why it is not good to be starting any business using loans. But in a contrary, it is not a bad idea to expand one's business using loans. Then, one would have known the nitty-gritty of the business, so repayment won't be a problem.

 

[sincerem]

I don't have any business yet. But if I want to start, I prefer starting with personal saving rather than obtaining loan from banks. There will be peace of mind on the money that you own yourself compare to the ones that you obtain from the bank which may be difficult to repay if the business doesn't succeed

You're right, and your preference is what I am agreement with. I don't see myself starting anything with loan. Business should be done having the mind settled and not thinking about repaying a loan nearing repayment due date when the business haven't achieved anything. I just prefer saving it out no matter how long it will take me.

 

[btaliat]

I don't have any business yet. But if I want to start, I prefer starting with personal saving rather than obtaining loan from banks. There will be peace of mind on the money that you own yourself compare to the ones that you obtain from the bank which may be difficult to repay if the business doesn't succeed

 

[Mataracy]

If the business is very good and viable I don't see any problem in obtaining loan to finance the business.
Once its a good business that will yield more returns one can do it with loan and if one did not sure then one can go used one saving for it so that in case any negative things occurs then one will be abkr to bear the loose quickly and no body will disturb somebody because of the money or being borrowed.