What Are The Disadvantages Of Taking Loans From A Businessman's Point Of View?

[Good-Guy]

Loans is one of the hottest topics in the business world. There are many kind of world business organizations that rely on lending companies and banks to give them loans. I must say that taking loans is something that even many biggest organizations do. Some people are so rich that they do not necessarily need to take loans, but still they opt to borrow money. I believe that there are various kinds of disadvantages of taking loans. First of all, taking loans is risky. If you take loans and if you suffer from loss, you will lose mortgage.

Apart from that, the second disadvantage of taking loans is that you might lose money and if you do not manage top pay the loans back, you image as a businessman will suffer. Thirdly, this will also make many investors start doubting your business and they might think that your business might go bankrupt. Fourthly, whenever, you take loans, you always need to pay interest to the lenders and I think that this is one of the biggest drawbacks of borrowing money from banks and other organizations. So, what are some of the other kinds of disadvantages of taking loans from banks or someone else?

 

[Sotherefore]

Well there are some situations that loan should be encouraged in a business but this is only when you have a way of paying back the loan even if the business you are starting with this loan is not successful .

If you have a secured way of generating back the money to pay after the business collapses that you don't fall into trouble is just the best , and in a situation like this I can suggest you to get a loan after all you have a way of paying it back .

But a situation that you don't really have an external source to pay back this loan might somehow be dangerous because you might be at risk of going to jail if the business fails just like you said.

Personally I may not likely get a loan to start up anything because I do not just see the need for a loan now , but I will rather look for jobs opportunity to work hard and raise the required money I need to start up anything .

When you are able to start up a business with the amount of money you raise , it will be quite easy and you can run the business with a relaxed mind .

 

[Abigael]

It is so true that loans come with so many disadvantages. But people still find it a great source of capital for businesses. You will find that rich people like taking loans alot. Makes me wonder if the process of paying it back is what gives them the energy to work hard and earn so much.

Taking loans for business without a great plan is what brings about most of the disadvantages that come with not paying it back. Some people make the mistake of being pushed by the thrill to start a business to the extend that they take loans without a proper plan.

On the other hand, good plans may also backfire and so the business does not run as well as expected. Leading the business owner to fail in paying back the loan. These two instances are the reasons why when you take loans to start a business, you face so much anxiety in running it.

The pressure of wanting to pay back the loan as soon as possible can make you run the business poorly. This is because you are not really clear minded about running the business. You are just being pushed by the need to pay it back as soon as possible.

 

[btaliat]

Taking loans is not a bad idea, lack of proper planning is the main issue. Many people only take loan without strategizing on now make the repayment. This has really greatly affected the business.

The first issue such a business man always has is that it will limit his expansion. Debt always allow business to be limited, most business men will want to pay off their debt before thinking of expansion.

Another issue is that, they may incure more debt. Since business is not based on certainty, it may be very difficult for the busines man to repay if the business fail..

 

[Mika]

From business point of view, there are more benefits of getting a loan than the disadvantages. Even if there are any disadvantages, advantages of loan will outwit disadvantages. Business needs funds to grow, if you do not have your own funds, your growth will stop, so getting a loan will be the only viable option to build your business. However, if you are just starting your business, getting a loan for a new business can be quite risky as you should be paying loan before making profits