Finance Did you start with loan or through savings?

[sincerem]

If the loan is well utilized, I don't see any infringement of taking a loan to start up a business. It only becomes a major issue if the terms isn't reached after repayment expiration date. That's when issues come up which wouldn't be a nice thing for the business owner to bear. If you can make up the loan at the right time and make a little profit out from your business, I believe their is nothing hindrance in it.

I can simply take a loan during a business start up which I've read and planned for sometime, knowing too well that, losses wouldn't come block my promise. But I wouldn't go for a loan I'll be paying in excess of interest after repayment due. That's why a borrower should look clearer before agreeing to any loan terms to avoid the misconception in the future or falling into blind agitation with the loan company over a loan which he or she never read it's terms clearly.

 

[Kendy]

The first business I started was towards the wave of the prevalent covid-19 pandemic and unfortunately, I opted for a loan in a traditional bank although the interest rate was minimal or commensurate with the loan. The hit of the covid-19 pandemic made it very difficult and depressing for me to run my business adequately, this is because I operated two small scale businesses simultaneously, the first was a poultry farm and the second was a fruit business but due to the restrictions of total lockdown so as to curb the spread of the virus, my perishables were all spoilt because of no patronage and also people were more skeptical and also more cautious of anything they take into their system.


My poultry farm literally collapsed because even where to buy chicken feeds was a problem and the price has gone up to a triple level because at the time, there was no exportation and importation and this made it difficult for chicken feed sellers to get the products which inturn affected my business. People did not really have interest in eating chickens because of the feat of the virus and they were being careful because the chickens could be infected or have a flu. This taught me not to collect loans for businesses unless I have a backup plan!

 

[Good-Guy]

I am not conducting any kind of business right now. However, I might invest money again in cryptocurrency trading. I have taken a break from cryptocurrency trading because right now I am trying to prepare a kind of strategy that would help me to generate guaranteed profits by the grace of Allah Almighty. I do not plan to take any kind of loans at all. This is because I believe that loans only make things worse for businesses. There are many examples of businesses suffering from financial losses due to taking huge loans. I believe that personal savings is the best thing when it comes to starting any kind of business.

In the past, I have traded in cryptocurrencies and I have suffered from losses. However, I suffered from loss when I invested my own money. Loss is bad but you end up in a bigger debt when you take loan and after that you suffer from loss. Many corporations went bankrupt because they were simply not able to pay the loan back in the year 2020 due to Covid-19. Only if they had invested their own finance, they might have had survived. So, I would not advise you to risk taking loans.

 

[eldavis]

I actually started my business with my savings. I have never been a fan of taking loans before so I have never tried it, I had to so some side hustles to save up capital for my business.

 

[Rachael]

My business was setup through my personal savings. I never like the idea of taking loans and for me, no matter the profitability of the business idea, I would not take loans. There are other ways of raising capital apart from loans. I started my business on a very small scale and I could not even afford the digital machineries for janitorial services which would help me in making the work easier and more sparkling but I took it as a challenge upon myself because I detest something that would put me under any form of pressure. I used the manual equipment and wasted so much in doing the job just so it would be equivalent as using digital tools. Luckily, as time went on, I was able to purchase more equipment that has been helping me to perform my work faster.

There is a lot of disadvantage that comes with taking loans and I really recommend anyone who has the boldness to obtain loans and still have their business going smoothly. Especially during the pandemic I saw many people who had taken loans to set up their business, they business perished and so did they loan. Some had to start selling their valuables to enable them repay.

 

[sincerem]

Its a total downtime to start selling my valuables just to repay the loan which I took for a failed business. That's why, spending time while saving for my future business is the best. At times, thinking about loan repayment makes some business owners losing out on business, since they're focused on making more profitable, they'll be pushed harder selling above the products market price. It is better to sell at the height of the market price, and gradually climb up. Again, some persons didn't make clear research and plan about the business they're starting, which caused them heavily and liquidated their borrowed funds. If you lose out with the funds you saved up, at least you wouldn't over think, or facing a problem. But one who started a business enterprise through loan funding, has lots of things to think about in order to settle the outstanding loan debt. Such kind of debt, is what I don't want to go through in my life, it is better to start from scratch with the amount of money I've saved up, than taking huge amount of loan after submitting collateral, and still it didn't work out as planned, such is more killing to the individual.

 

[Ithedicious]

Thanks ,that is your own personal decision , but in most cases I may be so sceptical about getting a loan to start up a new business especially a business I don't really understand , even if I have read to understand so many things concerning the business .

I would just prefer to get a loan to start up a business I have already establish and expand the business to the best of my knowledge and understanding , but getting a loan to start up a fresh business to me is something I may not likely do in a normal circumstances except it is absolutely necessary.

To me I always consider the risk factors of anything I am doing first before I even embark on it . There may be so much risks when getting a loan to start up anything you do not know because in some cases you may not likely be able to pay back the loan if the business is not going as you expected.

To cut off the Risk , I personally won't really care about how long it might take but I will just try to raise the money that I need to start up the type of business I am interested.

 

[EKUSANI]

finding a business you can start with loan or saving. The most important things is having a capital. And that the first thing for me. having a business idea first will help us,so that once we have the capital we know where to invest the money. how is it possible for us to do this? we can check check around us,I mean in churches, places of work and even the environment we live around, we will see some business owners, talk to them ask questions on how the all started. hopefully they will give us the advantage and disadvantage of it,as a directive to guard us. so when once we are convinced of what they are saying and also know that in every business you also schedule for lost.it very important that we will lost. But that should not limit us. that because we lost to gain knowledge,we lost some time so learn a lesson so it's not something that when you lost you now run away from it.rise up do something for a better tomorrow.ley try very hard and stop depending on our monthly salary because it can fail us .and it has been failing us the past years

 

[Yusra3]

When starting my business, I opted to bootstrap using personal savings rather than taking out loans. This allowed me to maintain full control and avoid accumulating debt from the outset. However, it did limit my initial growth and required an extremely lean, disciplined approach while striving for profitability. Ultimately, self-funding through savings aligned best with my risk tolerance and desire for independence, even if it made the early stages more challenging financially.