Investment Don't borrow to invest.

[Mika]

I am always in favor of burrowing money if you are using that money to invest in some profitable program. However, you need to check one important thing, how much interest you are paying for your loan and how much profits you are earning from your investment. Your profit must be bigger than the interest you will be paying for your lender.

 

[Ahmedo24]

I don't like the idea of borrowing money in order to start a business or make an investment on any form. I'm not saying this because I'm a pessimist but we don't know what the future holds and there's a chance that it wouldn't be a success. What happens if your lender wants his money back but you're unable to pay him in time?

It is more reason why you will see some people selling of their businesses or their collateral just to enable them to pay back the loan to avoid any embarrassment which the lender might inflict on them but honestly if one can be patient to make his own little savings then start gradually you will be fine

 

[chicnthin]

I don't like the idea of borrowing money in order to start a business or make an investment on any form. I'm not saying this because I'm a pessimist but we don't know what the future holds and there's a chance that it wouldn't be a success. What happens if your lender wants his money back but you're unable to pay him in time?

 

[Ahmedo24]

If one can can save money to start a business on a very small scale why you watch the business grow then you know how to run the business properly especially identify the boom and it doom. It is at that time that you cannot borrow money to expand the business but it is not always advisable to borrow money and start business.

 

[Setho]

I have always maintained that no matter the business that you will want to open you should not go do whatsoever to start. You might borrow money in order to scale the business or expand it but it is actually not a good idea to borrow money in order to start the business entirely.

 

[sincerem]

I agree with you. It is really best to avoid investing using borrowed money. The investment may not go well and you will end up lacking money to pay it back. Moreover, the pressure imposed by wanting to pay back the loan will hinder you doing your best in the investment due to the anxiety.

That's it, the anxiety and pressure upon the loan repayment will be high. That will make the person who borrowed the loan to be intense and pressured when running his or her business in order to make up the loan. At the end the person might fail to reach out to the demand of repayment.

 

[Abigael]

I agree with you. It is really best to avoid investing using borrowed money. The investment may not go well and you will end up lacking money to pay it back. Moreover, the pressure imposed by wanting to pay back the loan will hinder you doing your best in the investment due to the anxiety.

 

[sincerem]

This reminds me of my former boss who would avail the personal loan in our office. The interest rate is 12% per year which is very minimal. She would deposit the proceeds of the loan in a fixed deposit account that earns interest of 10% per year. It really made me wonder why our boss was silly if not stupid with that kind of investment.

How much interest do you want your boss to charge when disbursing loan to individuals and other business entrepreneurs?? I think such interest which is 10%-12% is very nice and affordable. Such kind of interest rate can bring more people taking loan from the company and repaying on time.

 

[Alexandoy]

This reminds me of my former boss who would avail the personal loan in our office. The interest rate is 12% per year which is very minimal. She would deposit the proceeds of the loan in a fixed deposit account that earns interest of 10% per year. It really made me wonder why our boss was silly if not stupid with that kind of investment.

 

[sincerem]

If borrowing of money to start any project online or offline will be disbursed without high interest rate, it could've been worthwhile indeed. But since its not given with out high interest rate, i don't see myself near loan request. My advise to those who wise to take it during their first business run in. Should invest it wisely in order not to say, hard i know.

 

[funmi]

It is very very bad to borrow money to Invest in any business, not only in cryptocurrency but in other long time businesses. If there is a flop in the investment, then the person will be fully in debted. We must not try to borrow money to invest in crytocurrency because it is very risky. It is not a stable business,it goes high and low.

 

[Ahmedo24]

I am always in favor of burrowing money if you are using that money to invest in some profitable program. However, you need to check one important thing, how much interest you are paying for your loan and how much profits you are earning from your investment. Your profit must be bigger than the interest you will be paying for your lender.

Even if you're always available with taking no it is still not advisable to take loan to invest on volatile assets like cryptocurrencies because single policy of government or an influential figure and the cryptocurrency market can easily crackdown the system which may take time to recover so you can see how volatile the system is.

 

[btaliat]

If is not a gain saying to conclude that most intending business owners are hindered by the lack of money factor. There are many people out there with nicest business ideas but capital to execute the ideas already serves as an hindrance when it comes to execution of this projects. This made some people to delve into borrowing to invest.


While borrowing is one of the ways an intending business owner can fund his business, it should not be considered as the right way of funding any investment because of the following



Working under pressure. When a person borrows to invest, the person will be forced to be working under pressure not to make profit but to repay the borrowed fund. And this apart from affecting the physical structure, it does affect psychological function of an individual.



Aside this, except with a solid feasibility studies which may even go wrong, no one can really say the aftermath of any investment. At times, it may be successful and at times goes wrong. Imagine, someone that borrowed money to invest on cryptocurrencies these days, that person may have himself to be blamed because of the bearish of cryptocurrencies which no one saw coming.

 

[sincerem]

I think we belong the same school of thought. The only reason someone should be considering borrowing is when she or he needs to expand her it his business. Anything from this, borrowing should be the last resort and not the first on our list. Starting investment with borrowed money doesn't make the investment yours. You will still be having the feeling of the borrowed money.

Yes, running a business with a borrowed funds is just like running a business with another person's funds. I can't risk myself trying to use borrowed funds that will give me sleepless nights. Using a borrowed funds to run a business should give us the feeling that we aren't the rightful owner of the business, cos our hard earned money isn't injected into the business.

 

[Mataracy]

If is not a gain saying to conclude that most intending business owners are hindered by the lack of money factor. There are many people out there with nicest business ideas but capital to execute the ideas already serves as an hindrance when it comes to execution of this projects. This made some people to delve into borrowing to invest.


While borrowing is one of the ways an intending business owner can fund his business, it should not be considered as the right way of funding any investment because of the following



Working under pressure. When a person borrows to invest, the person will be forced to be working under pressure not to make profit but to repay the borrowed fund. And this apart from affecting the physical structure, it does affect psychological function of an individual.



Aside this, except with a solid feasibility studies which may even go wrong, no one can really say the aftermath of any investment. At times, it may be successful and at times goes wrong. Imagine, someone that borrowed money to invest on cryptocurrencies these days, that person may have himself to be blamed because of the bearish of cryptocurrencies which no one saw coming.

It is not good to borrow to invest at all since investment has to do with long term or n short term.
Investment is not certain some times that is ,it is risky and if one should run at loss how would the person be able to pay back? No way,so it's not good to borrow to invest.

 

[btaliat]

That's what I am saying

The bearish moment we experienced that is about recovery now made a lot of people cry their ass because they had borrowed money to invest into crypto unfortunately the market was down and they also made mistake of doing panic sales which compounded the problem. I pray not to borrow money to invest in cryptocurrency because of the risk involved.

That's what I am saying. As there is risk in cryptocurrency, there is risk in other businesses too. That's why I said it is not advisable to be borrowing to invest. It can be done with other fund sources from other areas rather than borrowing. This will even cause rest of mind.

 

[Ahmedo24]

We are in the right track with me. The interest on the loan has made some people to be unable to repay the money at a stipulated time and also failure to pay this loan at a stipulated time will also attract another interest making it difficult for the borrower to repay the loan he borrowed to invest.

The bearish moment we experienced that is about recovery now made a lot of people cry their ass because they had borrowed money to invest into crypto unfortunately the market was down and they also made mistake of doing panic sales which compounded the problem. I pray not to borrow money to invest in cryptocurrency because of the risk involved.

 

[allison001]

The only time it makes sense to borrow money for an investment – known in financial lingo as "invest a loan" – is when the return of investment of the loan is high and the risk level of the investment is low. It is inadvisable for an investor to invest a loan in a risky vehicle, like the stock market .
Also, if an investor takes out a loan it does not make sense to place the money in an investment that will mature after the loan is due. It is also important that the investor makes sure that the return on investment is greater than the cost of the loan.

 

[btaliat]

In fact only a fraction percentage of those who borrow to invest makes it large number of them usually ended up losing the money they borrow so up to 50% so they would have to pay about the money and possibly including interest. The best bet is to work hard online to earn money and invests it into cryptocurrency or use your personal money to invest so that I'm able to manage whatever situation that comes.

We are in the right track with me. The interest on the loan has made some people to be unable to repay the money at a stipulated time and also failure to pay this loan at a stipulated time will also attract another interest making it difficult for the borrower to repay the loan he borrowed to invest.

 

[Ahmedo24]

In fact only a fraction percentage of those who borrow to invest makes it large number of them usually ended up losing the money they borrow so up to 50% so they would have to pay about the money and possibly including interest. The best bet is to work hard online to earn money and invests it into cryptocurrency or use your personal money to invest so that I'm able to manage whatever situation that comes.