The stress of Starting a business with a loan

[Sotherefore]

Starting up a business with a loan sometimes are things most people may not like to do , sometimes occasions demands that we take a risk by getting a loan to start up a business .

Even when we are able to get the required loan to start up our dreams business, the stress of establishing a business and the potential risks involved is always the most challenging factors in this areas of life.

Anyone who is starting up a business with a loan need to make sure that everything works perfectly because a simple mistake that could possibly Leads to business failure might result in something serious if a debtor is not able to pay back the loan he or she has collected to establish a business.

Sometimes the type of business we are establishing with a loan also play an important factors , there are some business that are less risky to start with a loan while others may be risky

People that are interested to engage in business using a loan needs to really understand the risk factors that is involved with what they are doing...

when we make mistakes by establishing a bad business with a loan, we might be at risk of not being able to pay back the loan

 

[eldavis]

Besides the risk, another factor to consider is the amount of pressure you would have to face. There is a deadline as to when to pay back the loan, which means you would have to make sure you get the money available before then, this could lead to you working under pressure, which might also lead to you make wrong choices as well.

 

[Rachael]

The stress of taking up a loan in starting a business can only be well explained by the business owner who has a direct experience. I do not recommend obtaining loans for startup businesses and this is because of the stress and pressure attached with it. Taking up loans to start a business is not always the only alternative or option but it mostly preferable because of easy access to it. Crowdfunding, grants, empowerments, through personal savings, could always be more pragmatic. In fact, even though you want to take loans to start a business, it is better to take only half the total sum of the capital required and add it up wit your personal savings than just taking the whole capital through loans. The challenge is not always with obtaining loans because we have the; banks, online loan apps, money lenders, just to name a few nut the major challenge is when it is time or due date to repay. Some business owners make the mistake of choosing to pay the whole debt at once which makes them end up with bad debts because a problem can arise from any angle that needs immediate urgency and the money would be utilized. It is best to always repay the loan in bits so it does not affect the growth of the business.

 

[Abigael]

That is very true. All startups come with high risk since you are not really sure if you will be successful or not. Having started the business with a loan makes it even more risky.

You will be so unsure of whether or not you will actually pay back the loan. This can cause you to have so much anxiety die to the pressure of thinking how you will earn profits and pau it back before it's too late.

This kind of pressure and anxiety may make it really hard to run the business well. This mostly makes people to make mistakes while running the business.

 

[Alexandoy]

To be frank with a loan for a business I think it is all about being lucky or being unlucky. When my brother made a start up of his business as supplier of special steel, it is a retailing business. They buy long bars of steel and cut it into smaller pieces prescribed by the customer. After some time my brother wanted to be an importer. He borrowed the title of my my parents' property to be the collateral for a bank loan. That kicked off the importation business. He was lucky because in his first importation the business earned a good profit. That also the case in the subsequent importation that their business was on the right footing.

In another case a friend who had studied very well the livestock business borrowed money for his poultry. They own the land so the capital is not much although he had to get a bank loan to build the chicken cages. The business failed because the chickens got sick. It was really a bad luck.

 

[Kingsley]

I have never supported any one accessing loans, worse still when it comes to starting a business with loan. What I always encourage people to always do if they are start up for the first time is to try as much as possible to aviod loans with all it takes. First the business person has not acquired any experience so it will be very risky to go for loans that you really don't know how to pay back. And accessing loans as a start up will make the business never to grow fast. The owner of such business will be operating under serious tensions and having sleepless nights as to how Tom father the money to payback before the due date. This will bring such person so much fears and will make the person to make more poor business decisions since all what he will be doing will be in fear, this will even make the business to fail.

Rather than going for loans it will be better to get people to trade with and become a like an affiliate marketer so that you can gather more experience. Or one can partner with other investors and share profits with them based on percentages agreed upon.

 

[Abee111]

Starting a business with a loan is very stressing seriously. Because you will be careful and mindful of what you be doing with the loan you collected which is one of the advantage of it. But disadvantage overshadowed the advantage. Using a loan money to start up a business is just like playing bet virtual. Why I said that is because if the business started didn't go through good plan or you have no good plans for the business, it will definitely affect you. Secondly when the location of the business dose not suit the products you want to sell or produce there, the market for it will be low and there won't be much income as profit to settle that loan when the time comes. And also when the factory is not close to the resources you are using in production, cost of transportation will increase and that will equally increase the cost of production and also the price in the market. And when the price is high in the market, consumers demand for the product will reduce and production will also reduce. Therefore the profit of the company will go down. It will be difficult for it to repay it dept within the short period of time.

 

[Skysaint]

Starting up a business with a loan is not the best idea but we should understand that most people actually see it as their last resort. Sometimes in business, you need to follow up what's trending as at the time you want to set up your business; it may be in the area of fashion, it may be even restaurant business.
I am just saying that there are businesses that will be bullish or will prove to be more lucrative at a particular point in time and if you miss that period, you're likely not to earn from it again. So in this case, many will opt to take loans so as to benefit from the business at that very point in time but like I have said earlier, it's not the best way to start up a business but it's not like they have better alternatives.
As a business owner, running a business you established by taking loans, there will be an extra pressure on you while running the business which might lead you to making impromptu and reckless decisions. The best thing to do is to have a side plan on how you're going to make repayments Incase if your business should fail because most times what we see in business is not what we had imagined.

 

[Jasz]

The first disadvantage of taking a loan is that it will make you passive towards your financial situation, with dependency on the creditor. Second disadvantage is that it always creates tension between the debtor and creditors there by making your financial situation complicated. Third disadvantage is if you don't know how to spend money in a productive way then you are already doomed in your business. Next important thing is that if you are not not experienced or you lack good financial idea, facing some issues your business might lead to your failure.

There are advantages of taking a loan, but there are many disadvantages associated with personal loan or that for business also.The major disadvantage is the interest rates for associated with loans. The daily interest rates for these loans can range from 12% to 20 % depending on the lender. In some cases the loan can be up to twice as expensive as that of a credit card.

Taking a loan is not an easy decision as it has many cons. Loans are very risky, and can ruin your credit. Loaning money can give you stress, bad health, and a lot of other problems. The disadvantages of taking a loan do not really outweigh the advantages of having one. You should think about the risk before going to borrow money from someone or some company.

 

[Bookwormlux]

Starting a business with loan money is something that has eaten deep into a society, and this is usually a result of many individuals not wanting to take responsibilities and then starting from a very small beginning as they all think that it is very important to show off big at the beginning of your businesses so that people will think that you are really fully loaded with enough money not knowing that this will further lead them into a bigger confusion in the future, than they ever thought possible.

Like you highlighted very well the stress involved are just too many to mention and it is just important for us to make sure that as you're reading these things will also apply them in our individual lives so that we don't end up in a miserable state because of our decision to take these loans.

I can only but imagine how many people have taken this decision and are currently regretting it because of the much disadvantages that is continuously cussing on their business and their reputation as a whole because they're being unable to repair this loan as also cause a situation whereby their image is being tarnished by the loan lenders.

 

[CALVINDOL]

Sometimes a lot of business Enterpreneurs or owners didn't plan on getting a loan for your business. What really pushed them to get a loan for that business is that they don't have enough capital to start, in this way they have no other choice but to go for loan.

After getting a loan for your business, there are so many things you should do and things you should avoid in order to relieve or repay that loan.

Any business owner must be ready for stress as you said, because he or she must work hard in order to settle the loan he got for business.
Let's say, a business owner normally opens from 9 a.m. to 8 p.m, after getting a loan for business things must change, in order to clear the loan very fast you must adjust your time, in this way causing more stress.

To be serious, anybody that gets a loan for his or her business will not be able to sleep well, because you'll be thinking day and night on how to repay.
Most at times you don't eat good and nourishable meals as before.

So there is much stress after getting a loan for business,so it's good to avoid it.