can some one use loan money to begin a business?

[funmi]

I have always known that taking loans to invest in a business is very good. The Loan money is used to help people to move the business forward and support the business.
Many people would have stay out of business if not for loan. But the only thing am not sure of is that, is it good to start a business with loan money? Is Starting a new business with loan money a good move or idea?
Is it possible for the business to strive when we start the business with loan? Can the business still do well by the time you start paying back while you are still getting to strive in the business?
Please, your quick response will be much appreciated. Thanks.

 

[Augusta]

I don't advocate for this, I prefer one get loans to expand an existing business this way you would have known how to make profit from the business to be able to pay back the loan. Loans comes with high interest so starting off a business with paying back high interest isn't wise

 

[btaliat]

Why some people may see it as not a bad idea to set up a business with a loan. I do frown at it because at times, it allows the business to lose focus. The repayment of loans will be on his mind rather the success of the business. Than why I do encourage an intending business to employ other measn of getting money aside loan to avoid being depressed in case of business failure.

 

[Chibson]

I don't really advise people to use loan money to begin a business. it is advisable that you start small and grow your business and of course you will have the knowledge and experience to run a big business. Many people who take loans and venture into business end up going into bad debt.

 

[Sammyesx]

An individual that does not have enough capital or investors to startup a business, will be left with no other option than to take a loan, the issue with using a loan to start a business is the undue pressure it places on the business owner, that pressure can be use positively though, as a motivation to make the business a success.

 

[btaliat]

An individual that does not have enough capital or investors to startup a business, will be left with no other option than to take a loan, the issue with using a loan to start a business is the undue pressure it places on the business owner, that pressure can be use positively though, as a motivation to make the business a success.

A business is a two way sword which no one can predict. A business can fail even when we try all within our power. So what if the business fails? So the person will now be in two debts. I am in support of expanding businesses with loans but I am not in total support of starting up a business with loans. Though I may be wrong.

 

[Sammyesx]

A business is a two way sword which no one can predict. A business can fail even when we try all within our power. So what if the business fails? So the person will now be in two debts. I am in support of expanding businesses with loans but I am not in total support of starting up a business with loans. Though I may be wrong.

You are right though, getting loan to start a business is not too ideal, most people that starts a business with a loan know this too, but In a situation whereby there is no other means of getting capital to start a business people opt for the loan alternatives, that is why I say such person should see it as the more reason why they have to make the business successful.

 

[Alexandoy]

First off, what kind of loan are you taking and what is the collateral? A bank loan has a purpose which means you cannot use the loan proceeds for a purpose other than what was stated in the loan agreement. For a business loan to start there are many requirements unlike the regular personal loan.

 

[sincerem]

The essence of taking the loan is starting something reasonable indeed. If you don't start up something noteworthy with it their is no point borrowing it cos the implications will be high when we fail to account for the funds if misused. I can't even borrow any amount of money if the challenge isn't the one that is deeply affecting my business career.

 

[Abigael]

Taking a loan to start a business is not advisable but it can work well if you are really well planned and skilled to run the business successfully. The only problem is that you may be slaggish, the business fails and you end up with a loan that you don't know how to pay it back. Or due to the pressure of paying the loan, you end up not doing your business well and it fails.

 

[Heartstrings]

It's possible but personally I can't do it,I can't take a loan to start up a business, though starting a business with a loan doesn't really tell if the business would go well or not,but there may be lack of focus which will in return affect the business. I have said this before and I will say it again,I rather spend some time saving up some money so I can start a business,than taking a loan for it.

What if the business didn't go well as planned or thought? How will you pay back the loan? Infact you may actually lose focus on your business because how you are going to pay back the loan will always be your mind, especially if the business isn't producing much profit.

some people did it and are successful with it but personally thee is this fulfillment of achievement when you know you strive and struggle hard by yourself to set up the business and be where you are today.

 

[Etini]

It is very difficult to start a business with funds gotten from loans. There is a reason why finance companies don't give out loans to start-ups. You need to understand the nitty-gritty of a business. before you invest funds into it. Business can be tricky most at the initial stage and you might end up losing funds and being indebted. I don't advise anyone to take a loan and start a business.

Find funds from somewhere else, start the business and run it for some time Learn one or two things about the business, establish your footing and get a loan to expand it.

I have seen a person who took a loan to start a food business. The business failed greatly and she was running a helter-skelter to try to pay the loan. When she re-tried the business with her funds she still faced the challenges she faced at first but this time, she was not under pressure and was able to navigate through the challenges.

 

[MoneyManeAbundant]

of course you can. loans are the foundation of which business is built

 

[MoneyManeAbundant]

Just make sure you have a well formed business plan, and you can even caculated projected future sales and get a loan simply off the projections.You dont even have to have the sales

 

[MoneyManeAbundant]

Also your personal credit needs be in good shape to acquire business loan or your probably wont have much luck
unless its a S corp. They operate seperate from the owner financially usually

 

[anil02]

Here in my country it is very common to take loan for starting business. I took twice loan for starting business. Once for starting a factory, but my bad luck I couldn't success in it but I paid all loans by selling the factory. Second time I take loan for starting a shop. Here we have many option to take loan to start business. Here government also have many plans for all section of society to take loan to start business.

 

[saoussen5765]

Take loan to start a business has a lot of risk if you are not knowing the business that will be started or it is first time either for borrower or person how start project, it becomes less risky if you have started similar projects before.

 

[anil02]

It is not advisable to start small or big business if we have not its knowledge. In small business we can't hire person for work and if is common in big business to hire some specialist. For experience it is better to do job in the business in which we are interested. But we never forget that we get real experience when we will start our business