Starting a business with a loan

[cherry123]

What is your view on starting a business with a loan. I'm no advocate of this because of high interest rate. What do you think?

 

[Starmix]

It seems not good to start a business through a loan unless you already have a feasibility study to guide you in your business operation.

 

[cherry123]

It seems not good to start a business through a loan unless you already have a feasibility study to guide you in your business operation.

Yeah the high rate and the repayment period is never a good thing for new business starters. you might just fail at it.

 

[Mikky]

Starting up a business with loan has some complications like interest rate, period of payment and the business itself. What happens if the business didn't turn out as anticipated? So I won't advice starting a business with a loan.

 

[Edulady]

It has its ups and downs. On the other hand you get to start your business with the right amount of capital to aquire your business with everything it needs to get started. On the other hand you have to repay the loan weather your business makes profit or not.

 

[Mikky]

That's why it isn't a good move, either you make profits or not you have to pay up so its more like a gambling game.

It has its ups and downs. On the other hand you get to start your business with the right amount of capital to aquire your business with everything it needs to get started. On the other hand you have to repay the loan weather your business makes profit or not.

Post automatically merged: Sep 9, 2022

That's why it isn't a good move, either you make profits or not you have to pay up so its more like a gambling game.

It has its ups and downs. On the other hand you get to start your business with the right amount of capital to aquire your business with everything it needs to get started. On the other hand you have to repay the loan weather your business makes profit or not.

 

[cherry123]

It has its ups and downs. On the other hand you get to start your business with the right amount of capital to aquire your business with everything it needs to get started. On the other hand you have to repay the loan weather your business makes profit or not.

This is one problem with using loans to start a business, you would have to pay high profit for the loan. so it is better to use a savings.

 

[Mikky]

This is one problem with using loans to start a business, you would have to pay high profit for the loan. so it is better to use a savings.

Saving to start a business is the best even if you need a loan it will just be a little amount maybe to assist your initial savings

 

[cherry123]

Saving to start a business is the best even if you need a loan it will just be a little amount maybe to assist your initial savings

Yeah savings has always been the way of starting a business. With savings you don't have to think if sby repayments or High interest rate.

 

[Mikky]

Yeah savings has always been the way of starting a business. With savings you don't have to think if sby repayments or High interest rate.

Yea either you make profit or not you have no cause for alarm .

 

[cherry123]

Yea either you make profit or not you have no cause for alarm .

Sure that's the whole essence you wouldn't start panicking about payment of any loan.

 

[Hate2Wait]

We need to see our requirements. If we are planning to take a franchise for example of Coke etc then certainly we need to take loan as you need a bigger investment.

 

[cherry123]

We need to see our requirements. If we are planning to take a franchise for example of Coke etc then certainly we need to take loan as you need a bigger investment.

Yeah it might be okay for an existing business but what do you think about taking for a startup?

 

[Hate2Wait]

Yeah it might be okay for an existing business but what do you think about taking for a startup?

It's for those who are risk takers. As for me I'm not taking any risks since Covid outbreak so I am not in this favour and I actually prefer to start business from small scale and progress gradually.

 

[cherry123]

It's for those who are risk takers. As for me I'm not taking any risks since Covid outbreak so I am not in this favour and I actually prefer to start business from small scale and progress gradually.

Your last line is apt. it is always good to start a business gradually. Yeah from a small scale and grow it.

 

[Edulady]

This is one problem with using loans to start a business, you would have to pay high profit for the loan. so it is better to use a savings.

But what if starting the business with a loan gets you a higher profit margin? Whatbif that profit margin allowsnyoubtonreplay the loan in a short period and from then n the profit would solely belong to you? Wouldn't you take that chance?

 

[Starmix]

Better to start a business with a small capital and expand it someday once see profit is good. That's the time you ca apply for a bank loan.

 

[Edulady]

Better to start a business with a small capital and expand it someday once see profit is good. That's the time you ca apply for a bank loan.

Another great point to look at before you take a loan to start a business. Starting of with small capital and later expanding to a loan dependingnonnthe performance of a business is a smart business move

 

[Starmix]

Another great point to look at before you take a loan to start a business. Starting of with small capital and later expanding to a loan dependingnonnthe performance of a business is a smart business move

Agree with that advice. In addition, those who plan to operate a business must approach to someone experienced in business.

 

[Enxx]

I won't advise to start a business with loan. Because it is a must for the loan to be paid back and this Ming disturb the business. Unless the loan is from someone that will not request for it soon.