Things to consider before borrowing money for your business

[nomad]

Do you have a business? What are the things you consider before borrowing money for your business?

In my opinion, it is very important to conduct a thorough analysis of your business, including, sales, profits, operational costs, marketing costs, etc. before borrowing money. You also need to consider factors such as your ability to pay interest regularly, your repayment plans if your business doesn't generate enough profits to payback money. You also need to calculate how much interest you will be paying and how long you can use the borrowed money

 

[eldavis]

With how my business is going, still at the early stage I won't be able to take loan and then pay back and as well sort out other expenses. I would rather find a side gig to earn extra and invest in the business.

 

[nomad]

It is a good to earn money, save it and then use for your business, but do you realize it will take 10-20 years to do that?

 

[Stardom22]

The main thing one should consider before taking loans is the legibility for the business to repay back of loans.

 

[King Belieal]

Even when you are doing all those analysis, ensure to leave a 20% gap for business failures. That would help you ascertain the ideal amount to borrow.

 

[Ratine]

For me l wouldn't borrow money to fund a newly created business for that matter.

 

[Etini Willie]

It is important to ascertain the rate of returns in your business and balance it with the loan repayment structure before getting a loan for your business.

 

[Rubz]

I believe the most important thing to consider before borrowing money for a business is whether one have a means of paying back in case the business does not work out.

 

[Ratine]

The most important thing to consider is the legibility for the business to repay back the loans.