What's your experience starting a business with a loan

[relcap23]

if the business needs additional capital it can opt for a loan so that it can move faster. However there must be a comprehensive study on the viability of the.business, cost analysis, cash flow projections must be done.

 

[cherry123]

Yesh starting a business with ones savings is the way to go. The Truth Is that starting a business with a loan can be very or too stressful and frustrating

 

[IB D]

I started a business with a loan of about NGN50,000. That is about $80 equivalent. I really struggled to payback the loan. It was a food business and it failed even before the loan tenor elapsed. I had to pay the loan from my pocket. It even involved the police.

 

[hastral45]

It is not ideal to start a business with a loan. Running the business for the first time is not guaranteed. And you cannot be offsetting the payment of loans cfrom the capital in the business. It is good to have been running the business before, then loans could now be pumped in it for boosting.

 

[cherry123]

From experience it is not good to start a business with a loan. especially if you running the business for the first time. You can not guarantee that the business will be successful

 

[AruneBend]

Starting new business with loan is not a smart idea because we don't know whether it will grow or not so it will be good as when we see the business is growing and we need capital for its further growth then we can take loan and expand it.

I think it's very very risky a lot of bussnesses fail you don't know if it's going to be profitible or not if the loan is big you might not be able to pay it back wich can couse you a lot of problems

 

[Etini Willie]

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It is not ideal to start a business with a loan. Running the business for the first time is not guaranteed. And you cannot be offsetting the payment of loans cfrom the capital in the business. It is good to have been running the business before, then loans could now be pumped in it for boosting.

This is the reason why banks refuse to fund businessses that are just starting with a loan. The challenges of starting a business is not what should a loan should fund. Most startups are not profitable even after a year.

 

[Heatman]

I read a lot about not advisable to start a business with a loan. Have you ever started a business with a loan? Did you regret using a loan or it was a blessing for you?

I've never started any kind of business with a loan from other banks or friends which is something I hope that will never happen tomorrow because I always preferred to make use of my money to start any business project.

 

[cherry123]

I agree with you that the challenges of starting a business is not what a loan should fund. Yes some startups are not profitable. You need to do more to succeed

 

[Bisolami]

I started a business with a loan of about NGN50,000. That is about $80 equivalent. I really struggled to payback the loan. It was a food business and it failed even before the loan tenor elapsed. I had to pay the loan from my pocket. It even involved the police.

I am glad that you were able to pay it back and this is why I do not always like to take a loan for starting a busienss. What if you were not able to pay back? And the busienss even failed...

 

[cherry123]

This is always a high risk taking loan to start a business. This is why a lot of bussnesses fail. you don't know if the business is going to be profitible or not