Effects of financing business with credit facilities.

[btaliat]

At times, we are faced with only option of sourcing our business through credit facility. That's we borrow money from all those cooperatives in order to finance our business. What are the effects of this step.
The step has both negative and positive effects. The positive effect is that it may allow the business to boom quickly. The business owner will want to repay the credit hereby working assiduously to meet up with the task.
The negative side of it is that the business of collapse will lead to double loss for the owner because the business owner will still replay the money he borrows. Hereby making it a bad debt tof the business owner.
Which other effects you can think of?

 

[Peppul]

It's not advisable to take up loans or credit from any corporative or banks for the startup of a business. Loans are very tricky and I wouldn't advice someone into taking up loans to start up a business, best is look for capital, or work to save so you can use it to start up a business. So many businesses have failed due to loans and most of the business owners find it difficult to pay back the loan, and because of that some ended up loosing their lives, some ended up in jail and some lose their family properties. For someone who wants to take a loan for starting up a business always have a collateral that can be used to cover up for the loan incase something goes wrong. But generally it's not advisable to take up loans for business.

 

[btaliat]

It's not advisable to take up loans or credit from any corporative or banks for the startup of a business. Loans are very tricky and I wouldn't advice someone into taking up loans to start up a business, best is look for capital, or work to save so you can use it to start up a business. So many businesses have failed due to loans and most of the business owners find it difficult to pay back the loan, and because of that some ended up loosing their lives, some ended up in jail and some lose their family properties. For someone who wants to take a loan for starting up a business always have a collateral that can be used to cover up for the loan incase something goes wrong. But generally it's not advisable to take up loans for business.

It may not be advisable but it is necessary not only to establish businesses but to expand businesses. The only issue is that we must becareful when obtaining loans. At times because we are already desperate, we always jump into any option of loans without even reading the terms and conditions of the loans. So this made it difficult to repay these loans at times. And if we want to obtain loans with collateral, we need to be careful so that we won't lose the collateral

 

[Bookwormlux]

At times, we are faced with only option of sourcing our business through credit facility. That's we borrow money from all those cooperatives in order to finance our business. What are the effects of this step.
The step has both negative and positive effects. The positive effect is that it may allow the business to boom quickly. The business owner will want to repay the credit hereby working assiduously to meet up with the task.
The negative side of it is that the business of collapse will lead to double loss for the owner because the business owner will still replay the money he borrows. Hereby making it a bad debt tof the business owner.
Which other effects you can think of?

The most important factor is that which you have already stated. The best option when it comes to starting a business from scratch is to manage the little resources at your disposal, hopefully as time goes on, you would be able to meet up and expand your business to any extent you may want to. But taking a loan could be really tempting, it makes you start the business on a rosy ground and you may not even have the motivation to put in good effort, because you did not suffer to get the money.

Taking a loan to start a business without an alternative plan of repaying the loan is not a good decision.

 

[Seyesystem]

There is nothing bad in getting loan to start a new business is common when you don't have enough capital but Sometimes it's difficult to repay loans especially when there is decrease in sales.There is nothing wrong to get a loan for a new business once you know that the business is viable. So many big business that you here there name globally started the business with loan. Once you carry out your market research and feasibility study of the business and you are very sure of the profit projection of the business you can get your loan and start the business. Business involves risk taken I hope you still remember the higher the risk the higher the return. If you are very sure that the business is viable I will advise you to get the loan for the business.

 

[Donkiz]

Borrowing money to finance a new business is like an ill wind that hardly blows any good, so it's not advisable. Don't be in a haste to start a new business that you have to throw yourself into debt. Since most of these loans comes with monthly interest, it will suck life out of your business gradually until you are out of business.

It's advisable you make use of your personal savings, money from family and friends, or you can go into partnership to raise the needed capital for the business.

 

[Mataracy]

To borrow money to finance a business sometime depends on the person that borrowed the money either he/she is going to succeed in the business or not.
The positive impact and negative impact depend on the borrower I.e the one doing the business.
Sometimes when you borrowed a loan or money to finance a business your first fear will be I don't want to enter into trouble let me manage this money very well and sometime you may not even be looking for a way to maximize any profit but to break Even I.e if you can make profit you must not make loose.

 

[btaliat]

To borrow money to finance a business sometime depends on the person that borrowed the money either he/she is going to succeed in the business or not.
The positive impact and negative impact depend on the borrower I.e the one doing the business.
Sometimes when you borrowed a loan or money to finance a business your first fear will be I don't want to enter into trouble let me manage this money very well and sometime you may not even be looking for a way to maximize any profit but to break Even I.e if you can make profit you must not make loose.

You are very right. The motive of not wanting to lose gives the person that borrows to finance his business courage and determination to work harder. That's why I say it is good at times to borrow to start a business because t will being out our hundred percent hardwork.
Besides, if we are thinking of expanding our business tentacle, then borrowing may not be a bad choice foe this motive.