Loans When should one take loans?

MOSIUR

Active member
Loan is really a burden to one!
We have many known and unknown people in this world. We are living together here and there with various types of advantages and disadvantages.

Suddenly, someone of us may fall in danger, it may be physically or mentally or financially or spiritually. Most of the cases, it is physical or financial. Both of these topics are interrelated with each other.

Firstly, if anyone is seriously ill, he does not cover his capacity. He generally wants to get help from his near and dear ones. But, in case of failure, he has to take loans from a bank or a money lender or a rich man on a high condition. Secondly, if anyone falls in financial crisis to survive family, he also takes loans from the probable places. These loans are reasonable to take.

But, there are some people who take loans for a luxurious life such as to buy a fantastic car or to purchase a gorgeous home or to take part in the election or to go abroad but later on cannot repay loans. One should not take loans for these purposes. I think that one should take loans only for physical illness and financial crisis to survive. What are your views?
 

kayode10

VIP Contributor
You can take loan at different stages of your business. there are some people who take loan to start up their business from scratch. those people that do this usually don't have enough capital to push they are business idea so they opt in for loan. Some people also take loan to expand their business or to acquire other business.
 

Abigael

Valued Contributor
I agree with you. Loans should not be taken for luxurious needs. One should be really careful when they start taking loans for this purposes. It will soon lead them to being bankrupt and broke most of the time. It is best to only take a loan after calculating and deciding when how you will pay it back.
 

kayode10

VIP Contributor
Some entrepreneurs usually obtain loan to expand the operation of the Business when there is a high demand for their products in the marketplace. The use the loan to procure some essential equipment and tools in order to boost their production. it is very important to obtain look for something that you contribute to the business.
 

AfriPeeps Official

Active member
I agree with you, there are some kind of people who will never go for a loan no matter what they are facing but I don't see any big deal in getting a loan so far the interest rate is bearable and not too much, busineses flourish when there is enough financial backbone.
 

kayode10

VIP Contributor
You can take loan to work more on your marketing strategies if it happens that the sales are depreciating. The mistake most people make in business is to reduce the cost of marketing when they need more sales. they believe that doing so will increase the profit margin when they are spending less on marketing.
 

Skysaint

Verified member
I think it will be for the very best to take loans to develop or improve on your business. When you're already running a business and you noticed that the business has potentials and could be more lucrative for you just that you need money to expend the business then taking up loans becomes an ideal option for you. We shouldn't consider loans when it's about starting up a new business
 

Sotherefore

VIP Contributor
Personally I do not put it in my life plan to take a loan for anything because I don't see the need and I consider it as a burden and ycan be a source of emotional stress. I can only be able to take a loan when it is very absolutely necessary and I must be very sure that I will be able to pay back this loan even if what I am taking the loan to do has collapse.
 

Suba

Moderator
Staff member
It's better if the loan is not for consumption but to increase business capital, but if there is no other way, someone might be forced to borrow for treatment, or buy milk for their child, and there is nothing wrong if we have money to lend that person.
 

kayode10

VIP Contributor
You can take loan when you are about to launch your business. This will give you the chance to fast track the launching of your business. you can also take loan to acquire other businesses which you think will eventually make you money at the end of the year. You can also take loan to acquire equipment that will bring more profit for you in your business.
 

Bashbash

Active member
Loan is not a play thing except you need it for valuable thing like starting a business without capital,you can obtain loan because of hospital bill if necessary so that you won't loose your children or immediate family, their are something you want to do without money that you won't have choice
 
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