Bisolami
Verified member
Some people are used to the act of taking loans which is quite normal. These kind of people may find their way out of any financial problem because they have their ways of taking loans to solve ghat kind of problem so that the matter will not escalate and it seems to be the best idea. Taking loans has its advantages and disadvantages but people who are used to taking loans may not face the disadvantages because they know how to get out of debt and it may not be their first time of taking a loan.
The major disadvantage of taking a loan to fund a business is that some people may not be able to refund the money to the loan company which may cause some problems. The loan company and the individual always have an agreement on what date they will pay back the money and if the person is unable to pay it back, the interest will begin to increase and he may not be able to pay it again. They may lock his business place if he used it for the collateral.
I am always scared of this and it is why I always advise people not to fund their businesses by taking loans.
The major disadvantage of taking a loan to fund a business is that some people may not be able to refund the money to the loan company which may cause some problems. The loan company and the individual always have an agreement on what date they will pay back the money and if the person is unable to pay it back, the interest will begin to increase and he may not be able to pay it again. They may lock his business place if he used it for the collateral.
I am always scared of this and it is why I always advise people not to fund their businesses by taking loans.