Activator230822
Verified member
As far as l am concerned, there are so more shortcomings that comes with the taking of the business loans than benefits.
Some of the common disadvantages of the loans are outlined below;
-The higher interest rates charged
Most creditors poses some higher interest rates for the credit facilities that even the business could not afford to repay.
-Loans can cause bankruptcy
In the event that the business fails to repay it's loans/ debts its more likely to go bankruptcy state.
-Collateral of the loan could be confiscated
The business assets that could have been used to guarantee the loan is at risk of being reinstated by the creditors in case the business owners default on the repayment for the loan on time.
Some of the common disadvantages of the loans are outlined below;
-The higher interest rates charged
Most creditors poses some higher interest rates for the credit facilities that even the business could not afford to repay.
-Loans can cause bankruptcy
In the event that the business fails to repay it's loans/ debts its more likely to go bankruptcy state.
-Collateral of the loan could be confiscated
The business assets that could have been used to guarantee the loan is at risk of being reinstated by the creditors in case the business owners default on the repayment for the loan on time.