Starting a business on a loan.

[Vinkce]

Getting a loan to start a business may seem like a way out for many aspiring entrepreneurs but. Business capital is crucial to the emergence and survival of a business. Many businesses have not come to fruition because of the large capital involved starting them. When this capital is primarily monetary, one might resolve to taking a loan. Taking a loan to start a business, is it really a wise thing to do? Because, paying back may not be that easy since the business is just starting.
Although analysis and a lot of data could be taken to prove that a business would be such business would produce returns on investment so taking a loan would be safe. Despite this, is it really safe to take a loan?

 

[Jonaville]

It is not advisable to take up a loan especially if they are just starting a new business. It is almost always difficult when it comes to repaying the loan. I know of someone who was the very enthusiastic in starting a new business, he did not have the capital so he went to collect a loan, all my efforts to try to change his mind failed. Now he's finding it hard to cope financially because of the pressure to repay the loan. people should try to look for other alternative to source for their capital collecting the loan should be the last option.

 

[Seyesystem]

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.

 

[Peppul]

Like I use to say, am not a fan of loan taking, I always believe that taking up loan is not a good idea.. for a new business it's not advisable to take up loan to start such business due to the fact that there is no guarantee that that business will yield profit, alot of things needs to be put into consideration when starting up a business and when loan is involve in the startup of such business there is bound to be issues. If you want to start a business why not work and save instead that way even if you end up loosing your capital you won't be worried about banks officer coming to disturb you to pay back loan and end up confiscating your property. So for me it's not adviceable to take up loans to start up a business.

 

[Donkiz]

When starting a new business you really don't know how the business will pan out. You literally don't know whether the public will like your business model or not, you don't know what the level of patronage will look like.

You don't know the antics that your competitors will employ to frustrate your business, you don't know if the business will make profit or loss in the first three months, and you don't even know how long it will take for you to break-even.

So it's safe to say that taking a loan to start a new business, when these many unknowns are something you must face in the early stage of the business, is definitely not a good idea.

 

[Kinglegend01]

For me I think starting a businesss with a loan is not a good idea. Although it has alot of advantages like a bigger capital to start up your business and the chances that your business would be really successful with a huge capital is on a very high side. I think borrowing money from organisation to start a business is like borrowing a leg inorder ot move around, you might be thrilled initially that youbl can walk around anywhere you want to go to but with time you might be forced to move wherever the leg wants to go to.

 

[Kingsley]

To be candid not everyone will agree to the fact that accessing loans to start a business or run a business will be a very idea. And we all present reasons like starting out a business with loans will make the business not to grow and it will greatly hamper the growth of the business interms of paying back interest on a business that is yet to gain experience in the business world. And we also say loans affect an existing business negatively too as it appears to affect the profit of the business due to the interwst that is been charged on the loans. But what they fail to realise is that those business people who goes for this loams too are to blame as many of them do not even have a very good business plans. And some that do have existing business are not spending the loans wisely as im witness where someone took a loan of about N200, 000 and spent about N175, 000 for his personal use and the rest on the business, you can imagine how will that business grow in the first place. Later the people will blame their failure on the loan.