Is It Good To Start A Business By Taking Loan?

[Bisolami]

I've seen a lot of people trying to start a business without enough funds. I think it's one of the normal things. The funds are never enough.
There are ways of sourcing funds that we all know. You can take from your savings, and seek help from family, and friends too.
I would not advise a new business owner to take a loan because it's a new business that you have no idea about and it may not turn out well. So it is advisable to start a business with your money before taking a loan.

 

[eldavis]

Personally I won't allow or advice anyone to start up a business with the help of a loan. I feel this is too risky as anything could go wrong at any moment.

 

[Suba]

When we are about to start up a business, of course we have made plans and projected funds/budgets, we have calculated all the needs for both equipment, machinery, operational costs, administrative and general costs, marketing costs etc. so that we will know how much minimum capital we need. But what if we don't have capital, can the business continue, of course not. Then it would be better for you to sell all your valuable assets such as cars, motorbikes, shares, etc., which you can use as initial capital. After your business has been running smoothly for about 6 months, you can ask the government for a loan with low interest and it will be channeled through a government bank.

 

[Hate2Wait]

It'll be risky but when we need to start a business then many times we need to take a loan so it's OK if we are taking

 

[Bisolami]

When we are about to start up a business, of course we have made plans and projected funds/budgets, we have calculated all the needs for both equipment, machinery, operational costs, administrative and general costs, marketing costs etc. so that we will know how much minimum capital we need. But what if we don't have capital, can the business continue, of course not. Then it would be better for you to sell all your valuable assets such as cars, motorbikes, shares, etc., which you can use as initial capital. After your business has been running smoothly for about 6 months, you can ask the government for a loan with low interest and it will be channeled through a government bank.

This is exactly my point so and I will continue to say that I can never start a business by taking a loan but if it goes on well I will take a loan as the business grows

 

[Starmix]

I have not stated a business through a loan. I am afraid to apply for a loan from a bank. Bank charges almost double if failed to pay in a month. I started my business in the past by utilizing my savings.

 

[Bisolami]

I have not stated a business through a loan. I am afraid to apply for a loan from a bank. Bank charges almost double if failed to pay in a month. I started my business in the past by utilizing my savings.

Sometimes the interest may be very much higher than what we can afford so I will rather not take the loan

 

[Shavkat]

For me, it is not a good thing to startup a business from having the capital secondary to loan. Some elders believe that having a debt is not a good thing in business.

 

[LoukiaCharilaou]

Personally I won't allow or advice anyone to start up a business with the help of a loan. I feel this is too risky as anything could go wrong at any moment.

Yes, you are right. It is better to find some other way in order to start a business than by taking a loan.

 

[freelancermaria]

Can you afford to pay back the loan if the business fails? This is the most important question to answer before proceeding. If it doesn't, that's all the more reason to avoid getting one.

 

[Sanjeev]

I agree with most of the people here that we should run our business for at least for few months and then asks for a loan from the bank as say in 6 months we come to know whether our business will flourish or not.

 

[Reedex]

I will never encourage anyone to start a business through taking loans it is not going to be palatable and it's not going to be a very good experience at all.

 

[Stardom22]

For me I can't do Such a thing neither can I advise anyone to start a business with a loaned capital.

 

[Bisolami]

I will never encourage anyone to start a business through taking loans it is not going to be palatable and it's not going to be a very good experience at all.

This warning is something that everybody should have in their head if you want to own a business because it won't be nice to start a business taking a loan

 

[Niyi Briggs]

You only take loans to expand an already established business that is doing well. You don't take a loan to start a business. The business cycle is very porous.

 

[Magnus2022]

Is very risky to start a business with loan because any business can fail. Loan is better for already successful business. I have tried it and I suffered seriously from it.

 

[uptrendfinancialsignal]

Loans are good for already established business and not for the business that is just starting up because it could be detrimental.

 

[SHAHID987]

First try your best to start business by your own if not possible then take loan, but experience shows business with loan sometime causes many problems as you need to pay loan with high interest.

 

[Springtime]

I think using your own savings is the best way to fund your business. If you savings is not sufficient, try to apply for government funding which charges lower interest. The last resort is to get bank loan or get investors to invest in your business.

 

[Elendu]

Overall, taking a loan to start a business can be a good option if you have a solid business plan and a clear path to repaying the loan.