Loans Do you think it’s safe to fund your business with bank loan

[Skysaint]

I have always opposed bank loans. This is because they deal in interest and I dislike interest. There are many people who took interest and they later went bankrupt because they were simply unable to pay off their loans to bank and the banks siezed their assets and other properties in return. They even took away their cars and some other kind of small possessions.

Taking loans from bank is not just what you wake up in a day and decide to do. You must have a very feasible plan for how you are going to make payments even if push comes to shove. You are right about the interest rate but I think that of most lending institutions are much more higher when compared to that of bank loans

 

[Dora Wi]

Funding a business with a loan can be a good or a bad idea depending on the circumstances. If you have a solid business plan and have done thorough market research to ensure you have a high chance of succeeding, and you have no other option, getting a loan might not be a bad idea - though I think other opportunities should be considered first such as angel/venture capital investors and grants.

 

[Mataracy]

As for I will say yes; it is very good but on one condition. If the person can really utilize the money very well to make good profit at the end . At the same time one may not consider taking it if the interest is too high which can cause problem to some one in the businesses . one may also consider to take it if it were not the type of the bank that will be given some one problem on given collateral before they relies the loan.

 

[Jasmine]

If you don' believe that your idea will become successful, you will never start a business, right? Will you start a business when you believe that the idea may not become successful? Possible not. YOu are starting a business means you are sure it will become successful. if you believe you business is successful why should you worry about getting a bank loan?

 

[kayode10]

Loan can be a double-edged sword. If care is not taken and you misused alone it can cost you your entire business and you will still be in debt. If you are not sure of the business strategy you want to apply the loan for, it will be very good to avoid it and never take it. You must have a good track record about the thing you want to apply bank loan for, this will increase the probability to succeed with the loan.

 

[Jonaville]

In my own opinion, using anything borrowed money to start a business has never been something I would advise anyone to do. This is because a newly established business might not start off as booming right away. And trying to repay the loan in the midst of it all will be too daunting.

 

[Chibson]

Sometimes, it can be very catastrophically in order to start a business with bank loans especially if you do not have proper knowledge and understanding of how such business works. If you have an established business and you want to expand it then taking a bank loan is quite advisable.

 

[Mika]

If you have decided to start a business, you have probably done everything necessary, for example, feasibility study, competitor analysis, market research, product development, etc. If you have done everything why should you be fearful about applying for a bank loan. If you think you have a perfect idea, just go for it.

 

[Alexandoy]

Let me discuss a scenario that you made a start up with a bank loan. After 3 months of operation the business had no income in spite of the marketing expenses. Do you think the business can continue operating on the 4th month? If you have no bank loan to pay the installments then do you think the business can continue or is it time to fold up?

 

[Good-Guy]

Yeah, nobody do prefer taking loans in general when they have got better options. People do take loans when they lack better options, if you are facing challenges financially and have got a very lucrative business idea which just needs funds to implement. Then taking a loan won't be a bad idea provided you've got a side plan of getting back the money Incase your business doesn't work out as planned.

Unfortunately, I do not a really great plan. If I had a good plan, I might have thought about taking loans. As I said earlier, you should only risk taking loans IF you believe that your business strategy is almost foolproof and it will succeed no matter what or if it has a high chances of getting successful. I have invested money in a kind of opportunity that does not guarantee making good income so I will not take loans at all. In fact, I am also risking the current investment I made.

 

[Skysaint]

I think you have made some good points. I do not think that a person should really take loans in the first place. However, I believe that you may take loans if you have no choice left and this kind of troublesome situation does come in the life of many people who struggle with financial problems. Right now even I am suffering from financial problems but I am not taking loans because I do not know if taking loans would actually solve my problems or make them worse.

Yeah, nobody do prefer taking loans in general when they have got better options. People do take loans when they lack better options, if you are facing challenges financially and have got a very lucrative business idea which just needs funds to implement. Then taking a loan won't be a bad idea provided you've got a side plan of getting back the money Incase your business doesn't work out as planned.

 

[Good-Guy]

Taking loans from bank is not just what you wake up in a day and decide to do. You must have a very feasible plan for how you are going to make payments even if push comes to shove. You are right about the interest rate but I think that of most lending institutions are much more higher when compared to that of bank loans

I do not think that people necessarily take loans from banks. Many people even take loans or borrow money from their friends and relatives. I have no one who could actually give me loans and I would never take loans in the first place. I have invested a very small amount of money into an opportunity. However, since I am myself not sure about how long it will last, I have decided not to borrow money to invest in that opportunity.

 

[Mandy96]

Some people or let me say some business minded people think that it is safe to fund your business with loan but why would you fund your business with a capital that will make you think that whatever profit you are making belongs to some people or some organization that borrowed you the money to start off the business.
Speaking for myself, I do not support the idea of “funding business with loan” because in most cases that I have witnessed, such businesses usually crash at the end because when you start to make the profits on that particular business and you are planning to use the profit to move your business forward, then you start to think that you are supposed to pay back a loan.
And again, Loans are usually given with a timeframe. Now what if your business hasn’t yielded within the timeframe you were given to make use of the loan?

 

[Good-Guy]

Well, I think it all depends on the kind of business you are running. How lucrative and productive it is, from that you could ascertain the possibility of raising the amount you borrowed within the stipulated time. Above all, we should always make use of a plan B Incase our business disappoints, a side plan for clearing that he debts apart from the business

I think you have made some good points. I do not think that a person should really take loans in the first place. However, I believe that you may take loans if you have no choice left and this kind of troublesome situation does come in the life of many people who struggle with financial problems. Right now even I am suffering from financial problems but I am not taking loans because I do not know if taking loans would actually solve my problems or make them worse.

 

[Skysaint]

Well, I think it all depends on the kind of business you are running. How lucrative and productive it is, from that you could ascertain the possibility of raising the amount you borrowed within the stipulated time. Above all, we should always make use of a plan B Incase our business disappoints, a side plan for clearing that he debts apart from the business

 

[Good-Guy]

I have always opposed bank loans. This is because they deal in interest and I dislike interest. There are many people who took interest and they later went bankrupt because they were simply unable to pay off their loans to bank and the banks siezed their assets and other properties in return. They even took away their cars and some other kind of small possessions.

 

[Bookwormlux]

Your points are great but I don't think taking a loan for business is all negative. There are people who can actually take the loan and build a long lasting business even after paying back the loan. I think it all comes down to how well you planned your business. If you plan and run it well, you will pay back the loan and continue with business.

It is usually lack of planning that makes so many people to find it difficult to be able to repay a loan they have taken from a bank. These set of Individuals usually do not make a laid out plan on how they would spend the money in a way that would enable them to both make profits and save towards repaying the loan.

 

[Abigael]

Your points are great but I don't think taking a loan for business is all negative. There are people who can actually take the loan and build a long lasting business even after paying back the loan. I think it all comes down to how well you planned your business. If you plan and run it well, you will pay back the loan and continue with business.

 

[Bookwormlux]

Bank loans are not worth it at all and I would rather struggle with the little funds that i have at hand at the moment than to think about going to take some loan from a bank that will end up frustrating me to repay the loan when the time is due and I may not even have made some profits yet.

 

[btaliat]

There are many reasons not to fund businesses with loan as we have many reasons to fund our businesses with loan. Waiting for too long to save money makes some people to go for last resort by obtaining loan. If the person has focus and have much knowledge about the business, it may pay way for him.