Loans: Good or Bad?

loansjagat

New member
Well, it depends on you whether it is good for you or bad for you. If you are taking personal loans too often in order to fulfill your desires rather than the needs, then it is eventually bad for you. You should only take term loan for a short period or any other loan whenever it requires. Only that way, we can say that loans are good for you.
 

Good-Guy

VIP Contributor
Taking loans is risky and this is why I do not like loans. There are many horrible stories of people taking loans and suffering later. Many people cannot pay their loans back and they have to take more loans to pay their previous debt. This is one of the reasons why I do not like loans and I would always avoid them at all cost.
 

Samuel72

Verified member
Loan is good but sometimes risky this is why we need to be vigilant before taking any loan you need to be sure of what you are about to use the money for. This is because every loan comes with interest, you need to be sure that you will be able to pay back that loan before collecting it. We also need to consider the interest rate of a loan before collecting
 
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Deleted member 28127

Guest
Loaning is risky it can put your business into a boost or it can lead to your failure. Some businessmen are applying a system when loaning for example a company wants to purchase a machine worth $300000 they apply the 80:20 rule 80% for the cash payment 20% for the loan payment.

Sometime they also consider that periodical payments whether it is annual, quarterly or monthly. It is true that the longer the loan the greater the interest it will bear but reality check it is really hard to pay something frequently like every month since loans are not the only thing you pay.

Businesses also pay rent, utilities, labor, and taxes and for some reason a quarter or annual payment helps a business prepare for the future outflows of cash.

Loaning doesn't necessarily mean borrowing money it can also mean lending money. If you re the business you will be the one who'll lend money to a person and this can generate profit for you in the long run. It is also risky like borrowing money because there is a chance that you might not be able to collect the money that you lent this can lead to restructuring the loan or writing off the loan from your books which means you re assuming that you can't collect the loan any further.

In accounting loan is a really complex matter to be discussed and i tried to squeeze everything I know in this thread. Hope it will help you.
If you buy something by loan means I will buy this thing for 12 months and each month you pay 10 % of this price then if you buy it now and it costs 1000 $ you may affect a 5 % discount means 950 $ if you buy for 12 months you will get 1200 $ means 200 $ profit however it can something a lose investment because next year his price increase to 1400 $ however you sell it for 1200 $.
 

btaliat

VIP Contributor
I am not always in a rush to air my thought on loan. This is because it is a complex concept to treat. While others may see loans as a good tool to start up a business ideas, other may see it as unnecessary tool that can make someone bankrupt. But I always support loans meant for expanding business rather than loan that's meant for starting up a business
 

sincerem

VIP Contributor
Everyone have their own perspective around taking of loans, be it from the company sector, government or private mortgage loan institutions. I don't like taking loans for any investment option nor business. I just don't want to put myself at risk of losing my asset due to failure to meet deadline.
 

Alexandoy

VIP Contributor
I can say that the loan is not bad and always good. The problem is not in the loan but in the borrower. If they take a loan that they do not have the capacity to pay then it is not the loan that is at fault but the borrower. Another issue in loans is the willingness to pay. When the borrower has money but does not want to pay then the borrower is again at fault.
 

TOZZIBLINKZ

VIP Contributor
There are some aspects that alone are good, for example if you have an idea of starting up a good business that you know will bring more profit, is it good to get a loan so that you start up the business, knowing that you will get the money in a short period of time draw your business to repay the loan you acquired for, in this situation I can't say loan is bad because you get this loan for a good purpose, that is starting up your business.
 

shane robert

New member
In the event that you are gotten in a money related squeeze with awful credit and you are searching for arrangements, you may think "advance" and miracle exactly how great are awful credit advances? The entire issue comes down to semantics and the significance of "good" and "terrible" as far as you could tell.

All people who are searching for advances may go over features or ads that offer "terrible credit advances" and they may ask how great are awful credit advances? What are the repercussions to having credit when you go looking to obtain cash? On the off chance that you don't have decent credit for what reason would get another advance to be considered a "decent" thing?

As a matter of first importance, if don't have decent credit, you have committed errors on past advances or credit accounts. You may have a past filled with making late installments or no installments by any stretch of the imagination. You may have a past chapter 11 or dispossession on your record as a consumer. These are largely pointers of an individual who either has a deficient salary or who do not realize how to deal with their cash astutely.

When you don't have decent credit, it can take a very long time to get enhancements in your credit record. With a chapter 11 section, the negative will be around for at any rate ten years before it is dropped off. Other terrible obligations may most recent quite a long while. Attempting to improve your credit record is a long procedure which can likewise take years. On the off chance that you have had obligation combination projects or advances, those are more negatives on your credit record. Regardless of whether you are in a union or obligation the executives' program, your credit record will endure before it starts to improve.

All in all, how great are awful credit advances? At the base, not having great credit advances include high hazard for the moneylenders. They make up for high hazard by charging incredibly high financing costs. On the off chance that you resort to payday advances, you could pay from 400% to over 1000% or higher loan fees on a yearly premise. Those sorts of credit advances are not something to be thankful for in light of the high intrigue and their present moment of payday to payday. Numerous individuals who can't get credits somewhere else resort to loans against their next payday and after that get caught in so profound they can't get out. Those terrible credit advances are bad!

On the off chance that you can locate a monetary organization willing to work with you, you will, in any case, bring about higher loan costs since you are a high hazard borrower. It is ideal on the off chance that you can work with a managed budgetary organization like a bank or credit association in light of the fact that their loan fees are topped by state laws. They may just have the option to energize you to 36% enthusiasm rather than multiple times that sum. These advances would be a "decent" terrible credit advance.
 
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Guest

Guest
You might consider applying for an ensured individual advance be that as it may, due to terrible credit, you might be concerned if getting one is your best alternative. You are on the whole correct to be concerned and posing this inquiry has just put you headed straight toward settling on the correct choice.

Those with awful credit are regularly the ones who are in most need of a quick loan to pay for an unforeseen budgetary emergency - regardless of whether it's somebody in your family requiring hospitalization, extraordinary charge card duties, earnest family fixes or simply getting your vehicle fixed so you can get the chance to work; the rundown of life's sudden crises is boundless.

You may as of now know about the numerous online moneylenders who offer ensured individual advances for individuals with terrible credit and are most likely thinking about whether you ought to apply. Before you do have any significant bearing you ought to weigh up the upsides and downsides of such an advance. First we should think about the negative focuses.

These kinds of credits are regularly alluded to as payday advances. These advances more often than not include unobtrusive sums - for the most part a limit of $1,500. On the off chance that you require increasingly, a few banks might be slanted to loan you more, yet you ought to know that the premium charged on these credits can be higher than a typical advance - particularly on the off chance that you are applying for an unbound advance.

You may get endorsement and the cash rapidly but at the same time you're relied upon to pay it back next pay day. In this manner, you truly should make certain that you can manage the cost of the advance reimbursement alongside your current monetary outgoings - you would prefer not to apply for another payday credit to pay back a payday advance.

At long last, you should recall that inability to pay back the advance on time will further debase your effectively poor credit standing.

OK, so what are the positive parts of such an advance? Indeed, there are many really.

To begin with, these advances require no credit check so as to be endorsed - sweet music to the ears of those with not exactly flawless record as a consumer. Security is additionally not normally required nor is a cosigner.

On the off chance that you apply on the web, the application should be possible in a matter of a couple of minutes and once finished the choice is made in a flash. Moreover, the cash is wired direct to your financial balance by the following industry day.

You can apply for the advance for any reason; you are allowed to spend the cash on whatever you like.

The above are the more evident in addition to focuses and you might be now acquainted with them. Nonetheless, there are different positives you may not know about.

In all honesty, this kind of advance can really improve your financial assessment. When you pay back the advance, your credit report will mirror that you have been a decent borrower and your rating will improve. On the off chance that you get again and pay the advance back on schedule, you FICO assessment will be additionally improved.

Something else to recollect: despite the fact that the advance sums are normally little - particularly with an unbound credit - each ensuing advance (from a similar borrower) is typically looked on more positively. This implies there is the possibility to acquire more from ensuing applications - all things considered, you've demonstrated yourself to be a dependable borrower.
 

peterradcliffe

New member
loans and business both are risking. if you want to increase your business you need money. loans are the best way to get money easily and shortly. loans are goods or bad can't decide. its totally depend on people's.
 
I think so that loans are very good to start a new business with new zeal and zest.Loans support us in a very critical situation.They help us in our bad days to improve ourselves.We can start a good business and can earn a better profit.After a few days,we can return the loan to company or bank happily.Loan is bad if you do not plan ahead what you will use it for and if it will be spent without purpose
 
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Geoffrey09

Guest
Loaning is risky it can put your business into a boost or it can lead to your failure. Some businessmen are applying a system when loaning for example a company wants to purchase a machine worth $300000 they apply the 80:20 rule 80% for the cash payment 20% for the loan payment.

Sometime they also consider that periodical payments whether it is annual, quarterly or monthly. It is true that the longer the loan the greater the interest it will bear but reality check it is really hard to pay something frequently like every month since loans are not the only thing you pay.

Businesses also pay rent, utilities, labor, and taxes and for some reason a quarter or annual payment helps a business prepare for the future outflows of cash.

Loaning doesn't necessarily mean borrowing money it can also mean lending money. If you re the business you will be the one who'll lend money to a person and this can generate profit for you in the long run. It is also risky like borrowing money because there is a chance that you might not be able to collect the money that you lent this can lead to restructuring the loan or writing off the loan from your books which means you re assuming that you can't collect the loan any further.

In accounting loan is a really complex matter to be discussed and i tried to squeeze everything I know in this thread. Hope it will help you.
 
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peterradcliffe

New member
A loan, by the conventional definition, is money ‘advanced (by a third party) based on the borrower’s credit history and ability to repay the loan from personal income.’
It's good or bad is totally dependent on you. For emergency loans helpful for many peoples. The people who do not return their loans face many problems also.
 

Edulet

Active member
Taking loan is risking, and taking loan to do a tangible business you know you will definitely get the returns within a short time is worth it with the risk.
But instead of me to take loan, i would rather save my money until is enough for me to make use of.
 

jyu143

Member
Loans is the main reasons why companies or businesses are being closed, if you have a plan to start business and your capital is came from loans it is useless don't start a business if your capital came from loans it wont work.

I study business administration and I learned don't start a business if your capital is came from loans, because if you gain some profit on your business it's useless your profit will go to to the interest of the loans and if you don't stop loaning it's useless again.

If you need capital of your business you can loan but only once, don't loan twice ot thrice because it will drag your business down.
 
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sucess1995

Guest
Loan is good when u have a tacit plan for the loan you requested for. It is always dangerous to request for loan for an impromptu business or task. Loan is also bad when it was requested based on the speculative reasons or just for a forecasted profit. I could remember when some farmers in Nigeria according to the national bureau of statistics (NBS report) requested and collected some loans to finance their agro businesses without considering the uncertainty that might come their way, it happened that the country had her Most terrible flood ever in the nations history, the farmers experienced a huge loss. Three among the farmers that took loan committed suicide.
on this case we considered loan as being bad but the truth there is that you must consider uncertainty before collecting loan for your business.lo
 

behappie

New member
Loan is good if proper analysis shows that getting it is a wise decision. A loan gotten after a thorough analysis is would be used for predetermined purposes which are considered to generate more inflow than the loan cost and capital. Channeling loan for such purposes could make loans and accruing interest less significant when compared to the profit arising from it. This makes ways for payment of loan obligation as and when due. Both the borrower and and the lender smile at the end of the day. It guarantees the credit worthiness of the customer and banks are keen to give more loans to such customer. But getting where to invest bank loans to be able to meet its obligations is the most difficult task to a businessman. The is not some guess work, because guess work or shallow analysis would plunge any person into heavy debt.

For a small business loan is good is the about involved is so small that the capital invested by the owner or owners is enough to pay its principal and interest in the case of default. A businessman is a risk-taker. If he considers the risk worth taking, he could venture into it. But the consequence of not meeting the loan obligation could spell doom for the business. I think it is better to self finance a small business or through friends and relatives than get a loan, especially from a bank. Most businesses that default in loan repayment do not usually live to tell the story. They go under the heavy hammer of the lender. Loan can kill a business.
 
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Khen Ferido

New member
In layman's term, a loan is money you borrow from a financing institution that you have to pay within a certain period with interest.

So when is loan a good option? Loan is good if you will use to leverage your resources. For example, you will use the loan to expand your business. The advantage is that you have the money from the loan to use, and once you start earning from the business you can use thus to pay the loan without shelling out from your pocket.

Loan is bad if you do not plan ahead what you will use it for and if it will be spent without purpose.
 

argel241

New member
It depends on you and on how you manage your loan.It will be good if you know how to use the money wisely and invest to get profit from it.However, if you spent the money carelessly, it will become useless.The bad thing of having a loan is the big interest that you have to pay aside from having a big debt from the bank.Loan is not bad after all you just have to be responsible for it.
 
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