How much loan is too much for a business

[Mellorando]

This truly depends on what you want to use the loan for but it is advisable not to borrow a loan that you can't pay back before bowling alone you must first consider on ways to pay back in the absence of no way to pay back then you shouldn't collect the loan

 

[Samuel72]

Some people go ahead to take loan that they know full well that they can't recover such money from the business, such loan is too much for the business, it is good for you to take loan that you know that with time you will recover the money from the business. If the interest rate of a loan is too much, I suggest you think twice before taking the loan.

 

[Alexandoy]

I am always against borrowing money for the business because I would prefer to sell an asset instead. The loan can put a lot of pressure on your shoulders with the monthly installment and you are also paying interest that eats up the profit. But for expansion of the business it is just fine to borrow money as long as you have a program for repayment.

 

[Chibson]

I have seen it here so funny that I don't support people taking a loan in order to start a business. If your business is a new startup you need to grow it from the scratch and measures your success. but I am not against businesses that has already established and doing well to take a loan. There a lot of people who take loans to start businesses and end up not making any profit.

 

[Sotherefore]

I can only advise someone that has been into a business to take the loan and expand the already established business,it is not advisable to invest a loan in a new business you are not sure will survive In difficult time.is risky as i see

 

[sincerem]

The repayment interest rate is something i can't put myself into. I prefer staying away from such in order not to put myself on the hotseat of paying in excess when i didn't meet the deadline for the loan repayment. Taking loan is just a burden to me, that's why I m don't engage in taking it, I just feel settled to save my earnings and not taking loans.

 

[Sotherefore]

I can't advise anyone to get a loan and start up a business,it is easy to get a loan to start up a business but it is not easy for you to pay back the loan you collected, it can lead to serious depression and even death if care is not taken when you are not able to pay back the loan because of one reason or the other.

 

[anil02]

Repayment of loan is not easy. We get loan in a big amount to pay we have to collect one and one penny and it is not easy. What happen I am telling you, when we start earning from business, no doubt we have some personal need. Most of peoples give priorties to meet this needs in place of collecting money to repay loan amount.

 

[funmi]

It is the nature or type of business one is in to that will determine the amount of loan one will apply for. For example, in Nigeria, there are some businesses that doesn't require more than #50,000 loan to boast the business while some businesses needs millions of naira to support the business so it depends on the type of business and how big you want to grow it.

 

[sincerem]

I doubt if any financial institution will give such a privilege to have a loan for three years without heavy taxation on it. The best thing is to first make some money for the business , then borrow fund to complete the amount needed ,and then have a good repayment strategy outlined.

You're right @Josemendez, no financial institutions will give out such loan amount to an individual without demanding higher repayment during the end of the loan agreement. Three years is very much, it might even cover half of the money borrowed when it comes to paying back the loan. The best is to save at least half of the capital, then borrow small to add up then start up to reduce the cost of paying excessively.

 

[Josemendez]

Can loan be too much for a business?
Can't I go on and burrow as much as I want?

I think burrowing or taking loan from a bank is like eating a future cake, and when you eat your future cake, you will have no more cakes to eat in the future.
If you must take a loan, the loan should have a minimum of three years moroturium and 30 years tenor. This will save you from being under pressure to pay back your loan.

Alot of people do make mistakes when they are under pressure, as a business man, your mind should only be occupied with business growth strategies and not unhealthy thoughts.

I doubt if any financial institution will give such a privilege to have a loan for three years without heavy taxation on it. The best thing is to first make some money for the business , then borrow fund to complete the amount needed ,and then have a good repayment strategy outlined.

 

[Profwriter]

Can loan be too much for a business?
Can't I go on and burrow as much as I want?

I think burrowing or taking loan from a bank is like eating a future cake, and when you eat your future cake, you will have no more cakes to eat in the future.
If you must take a loan, the loan should have a minimum of three years moroturium and 30 years tenor. This will save you from being under pressure to pay back your loan.

Alot of people do make mistakes when they are under pressure, as a business man, your mind should only be occupied with business growth strategies and not unhealthy thoughts.

 

[anil02]

Ideally, loan should be less for starting a business. Because, what happens is when you are not on the loan pressure so much, you can experiment as the money you can loose, it's yours and it will give you knowledge of what you did. But, when loans come into play, things turn different as you will ask for more sometimes.

You are right that loan should be less but we can't compromised with requirement of funds to start a business. It is OK if we keep loan amount as less possible but in this situation we have to arrange funds from other sources. Remember lack of funds some time may be cause of failure of business.

 

[Lekhraj19]

Ideally, loan should be less for starting a business. Because, what happens is when you are not on the loan pressure so much, you can experiment as the money you can loose, it's yours and it will give you knowledge of what you did. But, when loans come into play, things turn different as you will ask for more sometimes.

 

[anil02]

The only institution you can go to get a loan is bank and bank are wise now before you can get a loan from them you will give them your account book they will check how much you made monthly and yearly before they can decide on how much to give you so you can never borrow more than the capacity of your business if you are getting loan from bank.

Can loan be too much for a business?
Can't I go on and burrow as much as I want?

I think burrowing or taking loan from a bank is like eating a future cake, and when you eat your future cake, you will have no more cakes to eat in the future.
If you must take a loan, the loan should have a minimum of three years moroturium and 30 years tenor. This will save you from being under pressure to pay back your loan.

Alot of people do make mistakes when they are under pressure, as a business man, your mind should only be occupied with business growth strategies and not unhealthy thoughts.

I am agree with you that me must be keep loan amount is low is possible. It is easy to take loan but repayment is not easy. We take loan in lack but to repay we have to collect it with hundred. If we have 100$ of own than we neve take loan more than 150$. In general no one give business loan for 30 years.

 

[Sammyesx]

Getting a loan to start a business is not too ideal due to the fact that it puts the business owner in lost of pressure, and business in general takes time to grow. The amount of loan to get for a business depends on the type of business you want to venture into, the bigger the business the Niger the loan, but it should be an amount you will be able to pay back.

 

[btaliat]

To me, before a business owner can obtain a loan. He must have exhausted all the possible ways of finding money. Then he should only obtain the loans that he can repay in a stipulated time. He must not let the situation makes him obtain loans that's beyond his capacity. A loan that's not repayable within 2 or 3 years may become a bad debt.

 

[Doradorwa]

Sometimes loan gets too much sometimes infact loan on my side is not too advisable for business... Because you will have to use your profits to pay the interest and believe me the business can never be yours until you pay all you own the bank... Your sixth sense will always be antagonizing you about the business... And what if you default due to some reasons... Infact loan is not advisable for a business.

 

[sincerem]

when you have too much cash in your hand vis-a-vis whatever you want to spend it on then its a sign that wastages are bound to happen. A loan unplanned for or overestimated on is a bad loan. The duration for payment of the loan should be flexible enough not to choke whoever is paying up.

Yeah, that might choke and becoming a worry for us in the future. I don't think we should get things in advance and suffer the course of it tomorrow. I've always believed in saving and working hard to get the possible cash i need to solve immediate issues that needs attention and not borrowing money that will accumulate big interest in no distance time.

 

[greatguy1]

Can loan be too much for a business?
Can't I go on and burrow as much as I want?

I think burrowing or taking loan from a bank is like eating a future cake, and when you eat your future cake, you will have no more cakes to eat in the future.
If you must take a loan, the loan should have a minimum of three years moroturium and 30 years tenor. This will save you from being under pressure to pay back your loan.

Alot of people do make mistakes when they are under pressure, as a business man, your mind should only be occupied with business growth strategies and not unhealthy thoughts.

when you have too much cash in your hand vis-a-vis whatever you want to spend it on then its a sign that wastages are bound to happen. A loan unplanned for or overestimated on is a bad loan. The duration for payment of the loan should be flexible enough not to choke whoever is paying up.