Is it good to start a business with a loan ?

Nico68

New member
People can have a different view for this question and this is mine

It's very bad to start your business with a lone. Do not take a Bank loan when you start your business.
People can think that when you take a bank loan you will have the money to launch your business and when it launches off the ground and becomes successful they can pay the loan back. Yes, but it's a great risk because that plan for success may end in failure, everyone thinks of success and wealth when they start a business but no one thinks about failure and poverty. It's very important to take that into consideration.

If your business fails, that Loan you took will put you in poverty, you can’t pay it back because most to if not all your money was invested in your business. Everyone prepares for success and no one prepares for failure.

Don’t take loans at the start and Don’t take funding from family and friends at the start because if you do and things go wrong, you will become a serious problem and create confusion around family or friends.
That loan will force you to get a job, work for years to repay the bank and then by the time you have some money you may feel its better to give up and just enjoy the benefits your job provides.

Remember then to plan for failure, not every business is a sure success at 100% and also remember to conduct a good market survey to know if there is a Demand for the product or service you want to launch.

Hope this helps you. If yes, drop your comment. In case you have other ideas that escaped my mind, kindly share it with me and others here.
Cheers!
 

lamia5765

Valued Contributor
When you complete your university studies in most of cases if you do not start your own project you have to work for years to start your business idea which becomes deprecated after 6 or 7 years of saving your salary this is why and find a new idea is really hard then most of people that have fresh idea go to bank to get a loan in order to realise this idea as soon as possible after renting a local and buying products throught bank then a supervisor from bank will study the project and accord a loan in order to start your business. This is a case from several cases. This is why people go to get a loan instead of waiting years to achieve this in order to maximise chances in growing his project during such period of time. Additionnally, you may work and pay your loan back from your project earnings by the time. This is feasible whitout a loan but hardly than getting bank help.
 

Mandy96

VIP Contributor
As an entrepreneur that is just about to start an establishment, it does not sound like a good idea, no matter how poor your financial status could be, it is not advisable to resort to getting a loan to begin a business. The reason is because it will surely come with an interest, imagine just starting and your business is booming, the hardest part is not to refund it, but you will also have to return it in an increased amount, if care is not taken, that could destroy everything and you will just get back to nothing. If you are intending to start up a business, then you should have the requirements even if it is in small quantities
 

sincerem

VIP Contributor
I understand that not every business is a sure success. If you really want to earn from this kind of business you really have to start sourcing for money from the best possible way and not from a loan option. But if a loan can be well utilize to raise the business and yield profit over time, then their is no disappointment in any way to that since their is derivatives to collect from the business in the later stages.
 

Mataracy

VIP Contributor
At time it is very possible id the person that want to start the business knows what h or she is doing.
If the the business about to embark on is viable one can take loan and utilize it quickly before the time if payment lapse.
And one should also be careful while doing that because if the interest on the loan is to high to pay back some time may be very difficult and it may also affex the th moral of the owner of the business.
 

Skysaint

Verified member
Well, the thing there is that no one enjoys taking loans or being in debt so I do believe that those who take up loans actually sees it as their last resort; it's not like they enjoy it.
But my honest opinion about this is that starting up a business with a loan isn't actually a good idea. Many things could go wrong in the process especially if that's your first time of ever running such kind of business. Business might not be as easy and as lucrative as we may have thought, you might picture your business idea where it becomes very productive as soon as you startup just to later find out that it's not really as easy as you think.
 

Sotherefore

VIP Contributor
Depending on the type of business, but my best advice is that you can start up a business with a loan but this should only be the type of loan that you can pay back even if the business cease to exist... This implies that you should not get a loan that will be too much for you to pay if the business eventually collapses because all these things must be put into consideration even if we do not want them in our life. Loan is risky if the business you are engaging into is not well organized to generate profit.
 

btaliat

VIP Contributor
No one knows whether a business will boom or not. So it is not advisable to start with a loan.
 

Skysaint

Verified member
Depending on the type of business, but my best advice is that you can start up a business with a loan but this should only be the type of loan that you can pay back even if the business cease to exist... This implies that you should not get a loan that will be too much for you to pay if the business eventually collapses because all these things must be put into consideration even if we do not want them in our life. Loan is risky if the business you are engaging into is not well organized to generate profit.
You are probably right about that. But sometimes the amount of loan people do take from bank or other financial institution mainly depends on the amount of business capital needed for the business startup so if the amount required is quite enormous then he will have to loan it all but the idea here is that even if taking loans should be anyone's last resort, I think it's best to have a plan B on how you will make repayments if eventually that business should fail. Because nowadays the way we imagine a business to thrive isn't the same result we get when running the business
 

Sethbala11

VIP Contributor
Contrary to what many people have been saying it is not that bad for you to take up a loan to start a business. There are some financial institutions that are going to reduce your interest rates if you are going to use the funds to start up a business.
 

Sherman198

VIP Contributor
Starting a business without loan is the best way to have free of mind to run your business properly without being indebted to any organization. If you get a loan to start a business and the business did not go as planned you would be in big trouble cos you would not have means to pay back.
 
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