Discuss about getting loans,payday loans, Mortgages, and borrowing. Personal loan forum for bad credit.

Announcement

Collapse
No announcement yet.

Loans: Good or Bad?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Loans: Good or Bad?

    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.
    Last edited by Fecoms; 11-10-2017, 02:31 PM. Reason: Spacing

    #2
    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.

    Comment


      #3
      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.

      Comment


        #4
        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.

        Comment


          #5
          Acquiring a loan or lending money both go from good to bad only when discipline is lacking. Acquiring a loan takes a lot of discipline to be able to pay religiously and preventing oneself from acquiring multiple loans that will put him to being incapable of paying. Same thing goes when lending money. Discipline in managing the lending system plays a vital role in making sure that the money will not go to the wrong hands. Scrutinizing people to lend the money to and checking their background and capacity to pay will make secure the return of the money borrowed. Also, a written agreement or contract should always be presented to have a strong hold to the person who borrowed and may serve as an evidence when things go wrong.

          Comment


            #6
            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.

            Comment


              #7
              Loans have a advantages and disadvantages.

              Let's start with the advantages. The advantages of loans are preferred to you if your doing a business. A business that means a lot you and you know that you can gain profit on it. You must consider that if you lend some money make sure you can gain profit so that you can pay for it. Loans are also a good terms as far as emergency is concern, especially in medication. When someone is sick in your family members and yet you don't get paid yet or else your salary is not enough to pay the hospitalization, you can grab loans from lending company which can help you from your problem. Just consider this, if you borrow money you must return it.

              Now, let's talk about disadvantages. Many people abuses the power of loan, that causes them on bankruptcy. They uses loan by the terms "wants" instead of using it on "needs". Addicting on having loans to many branches causes you a lot a headache. Especially if you don't have enough money to repay your debts. Let's put it in this situation. Maria started to borrow money from a lending company, she borrow money for her shopping cause her salary is not enough to buy the stuff she likes most. She loans and loans and loans until such time she get caught of drowning with debts. One time, one of her family get sick and her salary is good enough to pay her debts. She can't even barrow money from other lending company for she has records by drowning of debts. Now, this is lesson we get from that. We must look towards about the usage of loans. You must look into it that loans are for needs with a cause not an instant enjoyment.

              In short. Loans are good for "needs with a cause" and not for "instant happiness".

              Comment


                #8
                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.

                Comment


                  #9
                  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.
                  Last edited by behappie; 11-10-2017, 04:57 AM.

                  Comment


                    #10
                    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

                    Comment

                    Previously entered content was automatically saved. Restore or Discard.
                    Auto-Saved
                    Smile :) Frown :( Confused :confused: Mad :mad: Stick Out Tongue :p Wink ;) Big Grin :D Embarrassment :o Roll Eyes (Sarcastic) :rolleyes: Cool :cool: EEK! :eek:
                    x
                    Insert: Thumbnail Small Medium Large Fullsize Remove  
                    x

                    Type the word L O A N without space

                    Related Topics

                    Collapse

                    Working...
                    X