Before you take a loan

Ummigal

Active member
Guys I strongly advise against going for a loan aside health grounds. Don't ever take a loan to start a business especially in Nigeria, else you would hate it. Except the loan is coming from a government owned bank like AFDB, BOI, BOA and CBN. A loan I won't be able to pay back? I rather be broke than to be in debt.
It always seems as if there are dark forces that control loans in general, especially the ones gotten from banks and loan companies. It takes alot of wisdom, restraint, and proper management to utilise loans in the best ways. Studies have shown that over eighty percent of people who took loans are unable to pay it, therefore, getting their properties confiscated. So, think thoroughly about finding other means to raise capital and ditch the idea of obtaining a loan.
I stopped thinking about loan when a renowned banker said that ninety percent of bankers do not collect bank loans.
 

Victor001

Well-known member
It's not advisable to take a loan to run a business because of the adverse effects sometimes the loan will take might haunt us because of the future recurrences for instance the case of pandemic that resulted in people going bankrupt, generally if you want to run a business I will advise it's either you start small or begin when you have enough capital at your end. using loan is very very risky it's like absorbing debt.
 

Henrylaw

Member
Before taking a loan check whether your ideas and business plans are sound and practicable. Then draw plan on how the loan will be returned from day one. Taking loan to biy houses, car and other things is suicidal. When you take a loa, you must have a means of returning it.
 

btaliat

Valued Contributor
The only reason a business owner must take loan is to expand his business and not for starting up a business. Business is like a coin where no one can easily guess right the outcome. A business owner must make sure the loan is used for productive activities. Or else, there may be difficulty in repaying the loan.
 

Hena101

Well-known member
There are many factors to consider before taking a loan from bank, organization or any platform that give it out even without interest because of the risk that may accompany it if anything negative happened. More especially it's not advisable to novice to go and collect loan and start a business is very wrong it is even better to start small and grow than to go and collect loan to start big and failed and then put yourself into trouble you will be regretting afterwards
 

Teatea

Well-known member
Taking loans to start a business as a new entrepreneur is the worst decision any one can make. The loan company or platform will make life difficult for you if you fail to pay back. But it you are faced with a situation where you have no choice than to get a loan, then come up a solid plan and strategy to pay back.
 

Timison

Active member
It's not prudent to take a credit to maintain a business due to the antagonistic impacts now and then the advance will take may frequent us due to the future repeats for example the instance of pandemic that brought about individuals failing, for the most part in the event that you need to maintain a business I will exhort it's possibly you start little or start when you have sufficient capital at your end. utilizing advance is incredibly hazardous it resembles retaining obligation.
 

Kabak95

Member
Knowing why you need to borrow money, to begin with, is the most critical factor you need to consider before taking out a loan. Borrowing money is a big financial step, and it can help you or hurt you—depending on how you manage it
 

Adetayo100

Well-known member
I strongly against taking a loan to startup a business, it is a very bad idea. Most businesses fails and not all investments yield returns. You can raise a certain amount of money to startup a business, you can even start in a very small way but i strongly advice starting a business with a loan because once the business go south you be in debt.
 

Akinwale701

Well-known member
Guys I strongly advise against going for a loan aside health grounds. Don't ever take a loan to start a business especially in Nigeria, else you would hate it. Except the loan is coming from a government owned bank like AFDB, BOI, BOA and CBN. A loan I won't be able to pay back? I rather be broke than to be in debt.
It always seems as if there are dark forces that control loans in general, especially the ones gotten from banks and loan companies. It takes alot of wisdom, restraint, and proper management to utilise loans in the best ways. Studies have shown that over eighty percent of people who took loans are unable to pay it, therefore, getting their properties confiscated. So, think thoroughly about finding other means to raise capital and ditch the idea of obtaining a loan.
I stopped thinking about loan when a renowned banker said that ninety percent of bankers do not collect bank loans.
As a business owner, if there are many things to avoid at the early stage of your business, the apex of it is loan. I see no reason why taking a loan should be the order of the day for young business owners when you can simply be calm and gather as much money as you know that you will be needing for you business. I witnessed a scenario here yesterday of a woman who was being made jest of by the personnel of one loan company here in my state. The embarrassment was too much just because she took a loan from the company and couldn't pay back as and when due.
 

Planet408

Well-known member
I'm in agreement with your opinion because it aligns with my view. I hate taking loans from the bank. This can keep one miserable in life if he is unable to repay the loan. For most people in Nigeria, loan has done them so much harm than good. I equally had same thought and wondered if their are dark forces that controls loans.
 

Samuel72

Well-known member
according to my own point of view as a well experienced businessman before taking a loan from a bank or from any financial organisation you should first of all consider the type of business you are about to use the loan to start up and also you should consider the interest rate of the loan if you will be able to pay back and also consider the period of time which is being given to you by the company to pay back the loan if you'll be able to cover up
 

Ahmedo24

Well-known member
Research as shown that more than 80% of businesses that are started on loan don't break-even in one year or more and they eventually crash so i quite agree with the writer , it is better to take loan to expand business instead of taking loan to start business. Loans are meant for bigger businesses and salary earners who doesn't use loan for business but for personal uses.
 
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