Do you think of taking loan to start up any business of your choice
- Thread starter Nestor79
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Good-Guy
VIP Contributor
I always advise people to stay away from taking loans. Unfortunately, many people have an extremely hard time paying the loans back. Obviously, the banks and many other financial institutions would want you to take loans from them because taking loans from them is beneficial for them only. This is because they earn interest on loans. Most of the people who take loans face challenges and the pressure on them is more as compared to people who tend to start business with a small capital. So my advise to you is: start a small businesses with your own capital and avoid borrowing money.
Huricanenate
New member
Agree. It doesn't take much to start a business these days, especially if it's online. You want to get started building your network, and learning without making costly mistakes at the beginning. This will kill your business quick.
Kingsley
Valued Contributor
I really understand the situation you find yourself and it is really tough to raise capital to start a business this days mostly with the economic situation we have found ourselves. But to be candid with you it will do you no good to start a virgin business on loan. This is because you are yet to have a practical experience of the business you intend to start.
I will encourage you to make better research and make more feasibility studies about the business you intend to start. Then you can be sure of what you stand to gain if you eventually take the risk of accessing the loan.
I will encourage you to make better research and make more feasibility studies about the business you intend to start. Then you can be sure of what you stand to gain if you eventually take the risk of accessing the loan.
E
eldavis
Guest
Taking loan to start up a business of my choice would be one of the worse decisions I would ever make, I would rather save up to start the business no matter how long it takes than me going to take loan. Using loan to start a fresh business puts you under pressure which you might end up making decisions that are not called for at the moment.
krivathakkar
New member
If you are someone who is thinking of taking a loan to start up any business, I feel you should go ahead with your decision. In current times it is not easy to raise funds for a business. So, mostly if any person has the potential to start his own business but doesn’t have the funds, will drop the idea fearing the capital requirement at the initial stage. With so many NBFCs coming up like Lendingkart I feel getting a business loan online is quite easy. Start up business loans require minimum documents. All you need to do is plan well and research about the loan before you opt for it.
krivathakkar
New member
If you are someone who is thinking of taking a loan to start up any business, I feel you should go ahead with your decision. In current times it is not easy to raise funds for a business. So, mostly if any person has the potential to start his own business but doesn’t have the funds, will drop the idea fearing the capital requirement at the initial stage. With so many NBFCs coming up like Lendingkart I feel getting a business loan online is quite easy. Start up business loans require minimum documents.
D
Deleted member 28127
Guest
This is because people do not trust the idea of a project easily they need a lot of warranties before according a loan or giving a credit to start such a business so it is hard when coming to borrow except if you have started projects before and succeed then the loan will be secondary, not principal to start.
Chet
New member
You must know that insufficiently funded business die very fast than loan-funded business. Risk is high but provides some more chance of survival of business or maybe successful. You are right to say stay away as business is more risky and requires funding that could not be paid by. It makes business more difficult for normal or poor people.
Mellorando
Banned
Entrepreneurs put their blood, sweat, and tears into their businesses — and they also put their assets on the line. If you borrow money for your business, you may have to put up collateral like your car or your home. If your business goes bust, you could then end up losing everything.
Although there are benefits of receiving a startup business loan, most notably having money to get your business going, there also some downsides to consider.
Having business financing can help you grow your business, but you should also remember that your company is new. The first few months of running a business can be stressful, and it takes time to generate revenue. In addition, it takes time to determine what your business’s funding needs will be.
As you can see, applying for startup business loans isn’t a decision that should be taken lightly.
Well, Depending on your business’s industry, you may need more funds than you can borrow from savings, family, or credit cards to get off the ground.If your business requires a large initial investment, such as inventory or equipment, a startup loan may be one way to get needed funds. That way, you can make sure that you’re putting your best foot forward as you start this new venture.
Although there are benefits of receiving a startup business loan, most notably having money to get your business going, there also some downsides to consider.
Having business financing can help you grow your business, but you should also remember that your company is new. The first few months of running a business can be stressful, and it takes time to generate revenue. In addition, it takes time to determine what your business’s funding needs will be.
As you can see, applying for startup business loans isn’t a decision that should be taken lightly.
Well, Depending on your business’s industry, you may need more funds than you can borrow from savings, family, or credit cards to get off the ground.If your business requires a large initial investment, such as inventory or equipment, a startup loan may be one way to get needed funds. That way, you can make sure that you’re putting your best foot forward as you start this new venture.
Kendy
Verified member
Actually, recalling back as at 2019, I had applied for a loan in a traditional bank and although the procedure I went through was rigorous, it was finally approved and that was when the covid-19 pandemic hit so hard and I was in a state of dilemma, this was because I had already set up my livestock Farm Business and I was also running on fruit business of perishable simultaneously.
I was unable to strike a balance as I did not have any backup plan on how to repay the loan and between getting customers to purchase my product and also striking a balance between repairing the loans because in as much as the was a total lockdown pandemic, it has nothing to do with the loan company or the bank because you will still have to repay the loan as at when due. This all went out to teach me that loans is not the feasible way of setting up a business because there are circumstances in which one has no control over. I ran into several losses in my livestock Farm because people were much more skeptical about eating any livestock as at that time and also taking of roadside perishables.
I was unable to strike a balance as I did not have any backup plan on how to repay the loan and between getting customers to purchase my product and also striking a balance between repairing the loans because in as much as the was a total lockdown pandemic, it has nothing to do with the loan company or the bank because you will still have to repay the loan as at when due. This all went out to teach me that loans is not the feasible way of setting up a business because there are circumstances in which one has no control over. I ran into several losses in my livestock Farm because people were much more skeptical about eating any livestock as at that time and also taking of roadside perishables.
Chibson
VIP Contributor
I don't always advise people to take loans in order to start businesses because there are a lot of disadvantages that comes from it on the long run. If you are already in the business then there is no problem for you to take a loan in order to expand such a business but if you're just starting then I wouldn't advise you to do that. there are a lot of reasons to this and one of them is that you will be under pressure to make profit in order to repay the loan which is not really good for your mental health. Being under pressure to run a business is not really good and there is a possibility that you will run into bad debt on the long run.
I think one of the things you should consider before taking a loan is the interest of that particular loan. If it is friendly then I think there is really nothing wrong for you to give it a try but if the interest is so high then I think you should start small. Starting small is actually very good because it will give you the exposition needed in business and experience on the long run.
I think one of the things you should consider before taking a loan is the interest of that particular loan. If it is friendly then I think there is really nothing wrong for you to give it a try but if the interest is so high then I think you should start small. Starting small is actually very good because it will give you the exposition needed in business and experience on the long run.
Oluwasegun purpose
Active member
It is a very bad ideal or bad decision to go and take a loan to Start up a business with it or even thinking about doing that it it is very bad it is advise able to do so because it causes a lot of damages in your business most people who partake in this act usually end up in the hands of debtors. The loan in which u went to take to start up a business just think about this question what is Capt, capital is the money which you use to start a business and taking about taking a loan to start a business that means that load stand as your capital that business is not going to end well so never try such even before taking a loan from anywhere you must get a colleteral to stand for you . I will advise people who want to start up a business who are thinking of talking a loan to start it I will advise you not to partake in such act why not looked for a job outside and do for a little time and be saving out of your salary with time you we see that you have already have enough money to start up your business of your choice... I will advise you not to try taking a loan to start a business
