Reasons to take loans

[Laurasulivan]

Loan is not something to always go for, to be honest, people do consider taking it when they do not have any choice.
Usually, most people do give it a consideration when they are going through a hard time that involves finance, and sometimes some firms just think that it is better off to run some investment with loan rather than one’s money because it will make you more serious with it.

 

[Richee84]

Loan is a very good financial support that help to sustain and expand our business when there is shortfall in resources. Loan act as a form of financial back-up to a business, though it come with a very high interest rate depending on the financial institution offering the loan. Loan if will utilize help to grow and expand our business. Loan can be gotten either from financial institutions, family members or friends. Loan from financial institutions always come with high interest compare with loan from friends and family members.
Loan in a business help to keep the business owner on his or her feet because he or she knows that the money is not a free money and have to be repay back with interest within the given period. Taking loan to run a business doest not encourage laziness in that business compare to those that run their business with their personal money who can choose to come to work at their own convenient time.

 

[btaliat]

I don't really go against laon especially if there is good course for the loan to be taken. There are many people that have lost their dream jobs just because they don't have much access to starting up capital. And they are also scared of obtaining loans.

We only need to have good feasibility studies when we are considering loan as a last resort. The success of the business will make the payment of the business easier. That's why we need to make sure the business is driven towards its success.

Another thing that's very important about obtaining loan is that it promotes spirit of discipline. There is always a chance of a business person to be disciplined since he knows he's repaying the loan. He will minimize reckless spending.

But however, it is always good to obtain loan for expansion of business instead of obtaining it to start a business. Because no one can determine the success of an intending business.

 

[Good-Guy]

Well, obviously many people would not prefer taking loans,. However, certain times many people have no other option. many people tend to borrow money, even during the financial crisis. In fact, there have been cases of people taking loans when they do not even have the ability to pay the loans back. Of course many financial institution would not offer loans to such people in these cases. However, in these cases, people usually take loans from friends and family members who are willing to help them during such hard times and I think that this is a good thing.

Unfortunately, things are not that easy when it comes to giving loans. Mortgaging is an important factor when many people provide loans and they also usually consider interest rates when lending money. I believe that a person must only borrow money when there is no other way to deal with financial problems and they must have a Plan B to pay the loans back. This is what I call a proper strategy to deal with economical problems. In fact, I believe that people must create good strategies in such a way that they would not need to take loans in the first place.

 

[Kingsley]

When it comes to accessing loans people are always skeptical about it, all because of their previous experience or some other persons experience about the negatives and positives about the term loan. But some people will give you a thousand reason why you need to access loans, but have we also consider those corporate organizations, top business organizations and government of countries that accessed loans and today are heavily indebted and some are still struggling to stay afloat because they are already drawning in debts. Infact most of the powerful countries of the world today their citizens live in perpetual debt and thry can't just find a way around it. is a very big struggle for them because their systems made loans accessible to them and the human nature in them made them always want to access more and more loans plunging them further in to more debts and there is no safety net. Most of the businesses that depended on debts are still struggling to survive today. But after saying all these it still remains a challenge living in a cou try where there are no deliberate effort of the system to make provisions for her citizens Hence people are bound to take loans but it should be used wisely .

 

[Immilash]

Advance is an awesome monetary help that assistance to support and grow our business when there is deficiency in assets. Credit go about as a type of monetary back-up to a business, however it accompany an extremely exorbitant loan fee contingent upon the monetary foundation offering the advance. Advance in the event that will use help to develop and grow our business. Credit can be gotten either from monetary establishments, relatives or companions. Credit from monetary organizations come 100% of the time with exorbitant interest contrast and advance from loved ones.
Advance in a business help to keep the entrepreneur on their feet since the individual realizes that the cash is anything but a free cash and must be reimburse back with revenue inside the given time frame. Taking advance to maintain a business doest not support sluggishness in that business contrast with those that maintain their business with their own cash who can decide to come to work at their own helpful time.but sometimes taking loans are very risky if you ask me the reason, is because some people you take the loans from can out pressure on you which is very bad, but if you have no option I think it will be a good idea to take loans.

 

[Abigael]

Sometimes taking a loan can be a necessary thing for you to do. This is because some situations poses it as your only source of money. However, it should never be done all the time. This will lead you to having an unstable financial status. Especially since most lending institutions or people lend with high interest rates.

One situation that can lead you to taking a loan is when life or death is involved. Maybe you or someone you love needs medical attention urgently to save life and there is no money to pay for it. That is where most people end up taking quick loans. But remember health insurance was introduced for these cases. Therefore, make sure that you and the people depending on you have a health cover.

Another scenario that leads people to taking loans is when expanding their business. Most people find this to be a noble reason because the business will bring back profits that will be used to pay back the loan. And the good thing with this is that the business is already established and so profits are almost a sure thing.

It important to note that it is not advisable at all to take loans for luxury purposes. Most of this instances are not planned for and so you don't know how to pay back the loan later on.