Do you recommend taking loans to start a business?

Immilash

Active member
I'm planning to start a offline business very soon but don't have enough capitals to start up, do you think taking loans from bank is a good idea? Your opinions are welcome.
 

jemmy

New member
Yes taking loans to start up a business is not a bad idea but how you handled it may make it a bad one. When you have a good business to run and a good plan, you can go on and take one.
 

rajeevanpr

New member
you can take bank loans but should study the market risk as well The loan taken and loan interest they put and you should be able to cover up all thing to repay the loan in time
 
D

Deleted member 13140

Guest
Nope said risk is really dangerous, before you do anything think about the negative and be more positive.. but not when it comes to loans never take loans to start a business no matter how sure you are about it and yes it might actually work but that's not the point, the point is what if, what if it doesn't work yes i said be positive, but remember not when it comes to loans.

i don't know it's just my advice if you want to go ahead and do this and ignore the advice no problem you might actually succeed and look back to this and be like am never taking advice from anyone, anyways goodluck follow your heart but listen to your brain
 
Last edited by a moderator:

sincerem

VIP Contributor
If you're lucky enough to get loan offer with low repayment interest, then it is very much acceptable for business. Most of the persons here in my locality are afraid of loan due to its excessive demand of interest rate, and no one wants to succumb to paying in excessively during repayment. Taking those loans when you aren't certain of your business profit isn't feasible to me. And again, taking the loans makes you a debtor, simply looking for a business profit and at same time trying to make double to cover up for the repayment interest, which is overload to the business owner to carry.
 

Icon

Active member
Well getting a loan to start is up a business not bad but if you know you can meet up with time and pay up the loan then you can go ahead, if you take the loan make sure the payment is your top priority so I f you want a loan next time they can give you
 

Kingsley

Valued Contributor
Starting up a business with loans might not be a very wise decision because at the infant stage of the business. The entrepreneur is yet to even understand his or her self let alone the frame work of the business and any little or major challenge that faces the business mug bring an end to the business. At thr infant stage the entrepreneur may lack the required experience to run the business effectively so it will be better to start accessing loans only when the entrepreneur has acquired some level of experience. So as to aviod gambling bank loans which may be later irrevocable by the business.
 

btaliat

VIP Contributor
Starting businesses with bank loan is not advisbable. Business is two sword venture. It can be positive and also negative. We should not be relying so much on the positivity aspects of bank loans. We should rather be encouraged to expand our business with bank loan instead of stating it with loan.
 

Mellorando

Banned
Yes, some personal loans can be used to fund a new or existing business. However, before applying for any personal loan, you should check that the lender doesn't impose any restrictions for business use. It's worth reading through the loan's conditions beforehand to see what is allowed and what isn't.
Starting a business isn’t easy. From the idea itself to its eventual conception, turning a dream business idea into something tangible and (hopefully) profitable is a feat that few can manage.
However, that is not to say it’s impossible. In today’s fast-paced world, opportunities for investment are aplenty, with seed capital, fund-raising platforms and networking opportunities available online at just the click of a button. Whether you’re starting out in business or have been established for a number of years, you might consider taking out a loan to get some extra funding for growth and other projects. But do you have to get a specific business loan to do this or is it possible to use a personal loan instead?
It’s worth reading through the loan’s conditions beforehand to see what is allowed and what isn’t. Lenders will normally explicitly say what their personal loans can be used for, and some will allow commercial uses while others will not. If you are unsure whether a lender allows you to use a personal loan for business purposes, you should be honest about your intentions as a borrower so the lender knows where they stand. Check the small print or, if you are still unclear, ask the lender, “Can you use a personal loan for a business?” instead of hiding your true intentions. If lenders find out you used a loan for a prohibited purpose, then they could make you repay the borrowed sum and the resultant interest immediately.
 

Chibson

VIP Contributor
Before I encourage you or discourage you from taking a loan to start a business, I must first of all look at how prepared you are for such business. when I have seen your level of preparation and seriousness and of course your level of knowledge about that particular business I will know if I would encourage you to take a loan or not. there are many people that venture into several businesses without much preparation and proper knowledge of how that particular business works and they end up losing out. Imagine if you take the loan to venture into such a business that you do not have proper knowledge of, then there is every possibility that you will go into bad debt and of course that is the nightmare of every business owner. the kind of people I would advise to take a loan to start a business and those that have established themselves in their businesses and of course succeeded with the little capital they started with. then when they need money to expand such a business it is always advisable for them to take a loan because they already have a way of paying the money bank
 

funmi

Verified member
In Nigeria today accessing of loans has become the order of the day as there is hardly any business that can survive without accessing loans. Infact it is very difficult to even raise money to cater for the basic needs of an average Nigerian, let alone have enough money to start a business .if we Ade factual with ourselves and take a quick survey in the market you wjll discover that atleast close to 70% of the traders in the market depend heavily on loans to run their businesses.

This is so because the economic situation is highly unbearable the government has brought untold hardship on the people. We see on the the news where even doctors and nurses are running away from Nigeria due Tk the bad government and poor economic policies of the government. People are indeed suffering in this country, there is no stable power supply that could have supported businesses of people. The roads are in a very deplorable state and people are losing their lives on the road and even goods are been destroyed on the roads due to the bad condition of the road and more so everything is terribly expensive beyond measures .
 
E

eldavis

Guest
Personally I would never take a loan to start up a business and I won't even advice anyone to start up a business with the use of loan. Loan puts you under pressure as there is a deadline in which you would have to pay back the loan,, which means all you do would be how to make enough capital to pay back the loan.
 

Kendy

Verified member
No, I do not recommend taking of loans to begin or setup a new business. There is this joy and satisfaction that comes with setting up your business through your personal savings or other means asides loan. It is very important to make logical planning and work with a realistic budget depending on your financial strength. What happens in a case where a food store vendor or a fruit seller takes up a loan to run a business and a deadly pandemic hit so hard just like we experienced in the Corona virus period, how do you hope to recover even the capital to repay? The repayment date keeps counting not minding if there is a global pandemic or not. What happens when an individual takes a loan to invest in real estate business and after purchasing the land, the location or environment is hit with disaster, insecurity or a hurricane attack? What will the investor do at that point, where the problem is beyond repairs. This goes all out to let us know that unforseen circumstances are not being planned for, but they are bound to happen and the pressure will not be as intense as in cases where you have a loan to pay.
 

Yusra3

VIP Contributor
Of course, taking out loans to start a business is a valid option since not many entrepreneurs can afford to realize their dreams. But, one has to avoid taking risks with finances. The borrowers provide the capital, however, the resulting responsibility is debt. I believe that initial borrowed amounts should be lowered by practicing bootstrapping as much as we could during the early stages of operations. Come up with a sound business lifetime plan, do cash flow planning for a proper indication of when you can pay back your debt, and only do lending when you're in the position to take back loans. See on whether your business aligns with possible investors requirements if you are the case. Appropriate considered loans could pave the way ahead for you, meanwhile, exorbitant debts may imperil your venture.
 
Top