Starting business with loan is like a suicidal mission.

[Bookwormlux]

A lot of times we have seen how much stress some people attract to them selves but thinking it is going to be possible to start a busy usually money obtained from loans as capital, but the fact is that this is likened to a suicidal mission that would get you into a very miserable state than you ever imagined. This is a topic that a lot of us may want to argue on, but the fact still remains that this is the truth as only few Lucky individuals get along with loans and succeed in business they started with loaned capital.

There are only few instances that make starting a business with loan to be on a safer side, some of them include

• getting the loan from a trusted relative or friend who really believes in your potential and won't disturb you to repay, especially when the business does not go as you had planned.
• Being employed ; if you are an employed person and earning good amount of money monthly or weekly, it is very much easier to start a business with loaned capital. This so because your job gives you a kind of security and back up plans all the time.

What do you think?

 

[sincerem]

Those two options you mentioned are few better options to consider when it concerns loan. At least, we won't pay in excess when it comes to loan repayment and again, their is no collateral for such kind of loan. When we take loan from beloved family member, friends, or from our workplace, their is no way we can be charged excessively or demanding for collaterals in case when the loan is over due. Our beloved family members or friends will help us provided the money is there. Unless the money isn't there, that's why someone finds it difficult to take money from his or her family members or friends. Won't advise anyone taking loan from money lenders, they operates in a mysterious ways, you might not have the money to pay back on time, and you'll lose more than you took from them as loan. And again, their repayment interest is very high, mortgage banks is even better than such money lenders operating within our vicinity.

 

[Bookwormlux]

@sincerem , Those money lenders do not have mercy at all and I even feel it is better to take the loan from bank , that is if there is even actually a need to consider doing so. This is because banks are registered and recognized by the government and they won't do anything that is not in accordance to what the rule says concerning them giving you loan. Banks are also that responsible and won't bother about coming to arrest you or go about to share silly messages to your phone contacts telling them how you are a scammer and ran away with their money.

Loan is an entirely big issue on its own that people ought to make sure they do away with to avoid causing problems for themselves. I personally have disciplined myself to make sure I do not fall into the temptations of these loan companies


Their interest rates are also very ridiculous and you would end up paying more than fifty percent more of everything when you take time to repay the loan. Sometimes, you can even lay close to one hundred percent of the actual money you collected from them. I do not subscribe to that idea at a

 

[sincerem]

Well said @Bookwormlux, I don't subscribe to such ideas of taking a loan from anywhere, not even from the mortgage banks. I will only take a loan from the mortgage bank when I have urgent issues to meet up in life, I don't see a need to take a loan when I don't have any tangible thing doing with the loan, such thing gonna be silly indeed for me, because the money will be squandered on things that are very unnecessary. And at the end it's regret, because I used my hand to create a problem for myself that will cause me paying more than I borrowed. Especially from those money lenders, who acts in a ridiculous manner when their loan becomes over due.

 

[funmi]

Some people have this strong believe that they can't do much in business without collecting loan first. Loan is very bad to start a business with.
Business does not come out the way we expect it to come out at times. People plan their businesses very well before they start but at times, some people's business work out exactly as planned while some failed woefully, it is not because those people are not good in doing business but some unforeseen circumstances just happened. It could be economy of the country, may be there is inflation or many other causes that can make business to fail.
Now, if you collected a loan to start a business, how will it be if that business fails? That is a very serious problem. How will you repay your loan if both capital and profit is gone? This will definitely bring about a big shame and some people may not be able to bear the stress and they may end up committing suicide.
In conclusion, it is not wise to take loans to start a business, no matter how big or small the business is. You can only take loan aftee the business is already set and it has been running for a long time.

 

[Rachael]

In fact, I must comment the thread starter, you should own a blog because you have a way of writing catchy phrases which would definitely draw the attention or readers or users. Starting a business with a loan is not really as bad as you think but this your title can send cold shivers to anyone who had prospects of taking aa loan. There are still some business owners who started their business from scratch by obtaining a loan and they are successful, although challenges are prone to happen both for those who set up businesses with loans or not. If there is no other alternative, then taking loans could be the only alternative. The most important thing is having a positive mindset and working towards repayment process. Most importantly, the business plan should be mapped in such a way that it has some ways to salvage crisis that which is bound to happen in most business ventures. The major demerit of taking loans is the pressure it puts on business owners because of the struggle to balance the equation between making gains and always repaying the loan. Loans can be repaid without pressure if the business owner has creative means of making profits while paying the loan as well and not waiting for it to accumulate.

 

[moonchild]

I'm strongly against taking a loan to start a business as a small business owner, there are different ways business could fail so you have to put that into consideration, another pattern that I discover is most people starting these business don't even have a target market they just start because of mere peer pressure and on top of this uncertainty they want to take loan to finance this risky venture.

As a business owner if you can't raise money for your business then you should keep your pride aside and go and get a paying job that you can save in and start your business you have to forget the ceo lifestyle now and focus on building y I r business you should also have delayed gratification.

Loan is a dead end that will just end up making you miserable, I have received a lot of messages from these loan sharks reporting one of my contacts for not repaying their loan and what's funny is, most of these loans are not even up to five thousand naira, but they're willing to soil your name because of that, imagine then if you lend much money to start a business.

We should learn about bootstrapping it really saves costs when it comes to starting a business

 

[Sotherefore]

Not that it is a suicidal mission but sometimes you can just get a loan to start up a business and you succeed in the business , but at the same time it is quite possible for you to start up a business with a loan and not succeed in the business , that is why it is dangerous because if the business is not successful there is no how you could possibly raise back the money you have collected to pay .

And as a result of this you might even be at risk of going to jail because when you are not able to pay back the loan you have collected the possibility of you being arrested will definitely be higher.

I will agree to those two options you have just mention that anyone who is really interested to start up a business really have to work hards to raise the required money that is needed to establish this business fully.

And also if a person can get support from his or her family members , the possibility of being at Risks will be limited at least your family members are trying to support you you and they may not likely arrest you if you are not able to make it in the business

 

[TOZZIBLINKZ]

Many individuals in the world today have the ability and the capability to think of mind-blowing and creative business ideas but are hindered and obstructed due to the problem of insufficient capital or lack of fund to facilitate and fund their business ideas , and so this business ideas just remain business ideas and have the capability to diminish as a result of insufficient fund and lack of fund . Young entrepreneurs find a way to combat their lack of funds to implement their business ideas , one way in which they find solution to their lack of capital is by seeking loan from the bank or from business realities .

Although to some extent it is not advisable to seek a loan to facilitate your business especially when you are starting the business newly . This is not advisable because your business ideas might not work out as planned leading you to accumulate or incur liabilities and Owings rather than profit and income . In the area of seeking loan from business relatives . Most of this business relative will want to hear your business ideas and as you explain your business ideas to them they might absorbed some of your positive strategies not known to them and implement them in their own business to make it grow and flourish thereby Robbing you off you are business idea .

 

[Kingsley]

I agree that going for loans as a start up or running the business General might not be a clever idea as there is a lot to put into consideration before anyone should even consider going for loans. One of the reasons why many people tend to fail each time they go for loans is as a result of the facts that, first they are having having personal issue that is not business related and they go for this loans in disguise as if they need the loans to expend their businesses, But the reality is they need the loans to finance their own personal problem.




I even saw someone who accessed a loan of $400 and ended up spending $350 on his personal need that was not business related and only invested about $50 into his business, now tell me how will the sum of $50 that he has invested now generate what $400 should have yielded. And you will eventually see someone like him saying some on must have bewitched him or accessing loans are bad. The problem I see with people accessing loans is the problem of mismanagement. Loans is what is keep in close to 70% of small and medium scale business people going today in Nigeria.

 

[Mika]

If you think getting a loan to start a business is a suicidal mission, you either do not know about business or you have no idea what actually is a business loan. Unless you inherited your father's business or you inherited a lot of money that you can use to launch a business, you will always need to borrow money to start a business. If you do not have your own money and if you do not want to get a loan, your business will never materialize. A lot of businesses also fail because they do not have adequate funds. If you have a solid business idea, there is no need to be afraid of loan.

 

[Setho]

So many people are usually very reluctant whenever it comes to the idea of taking out a loan to start a business and to be very honest you are not going to blame them for that . A lot of us are from countries that do not have a very good financial system. This means that it is very difficult for you to be able to get grants and investors for your business ideas.

It is always important that one should employ other means of security funding like saving if he already has a business of his own or looking for family support.

If one is not still able to meet up with the expectation then the only sensible thing to do is to actually take up a financial loan especially when they have strong reasons to believe that the business idea is a very strong one.

This also does not mean that it is every kind of deal that you should take part in . You should always put work to research that it is favourable to your business. Tis is in terms of the collateral to give, the amount of time that it will take you to repay and interest.