Is this the only way to start a business with a loan ?

[Sotherefore]

A lot of people do not accept the idea of establishing a business with a loan while others may consider it as the only alternative when they do not have money to start up the type of business they are interested to do, getting a loan generally to start up anything might be risky only when you can't pay back the loan you have collected.

Sometimes when starting up a business we might believe that our business is really successful based on the fact that it is running smoothly , sometimes an unforeseen circumstances can easily makes our business go down within a twinkle of an eye.. In such a situation paying back the loan you have collected may be almost impossible , this is the only risk that is involved in getting a loan to start up a business.

Based on the fact that we may not really know the outcome of how our business may be in the future , I suggest that anyone who is interested in getting a loan to start any type of business he or she is really interested to do should have an external source of generating money to pay back the loan, with this even if the business is not capable of generating the required profit you can still be able to pay it back....I hoped this is the best, drop your opinion .

 

[eldavis]

If you have an external source of generating the money to pay back the loan, why take it in the first place? It would best to just use that to fund the business. Loan is not always the answer, I know of someone who got a side hustle just to generate income for a business startup.

 

[Vics]

On a normal way loan are not meant to start a business this is to say that you don't take a loan to star a business but you rather take loan to expand a business

 

[Kingsley]

Many have been mislead to thinking that it is only when you access loans that you can actually start a business. And immediately they think of business the next thing that comes to their mind is how to access loans. The have failed to look into the nitty gritty of what business really entails. Business is trade And we know trade is buying and selling goods or service and sometimes both. Some people has got a misplaced priority just because they see people dealing with goods and they therefore believe they should also go into trade by goods. Whilst their specialty could be in the area of services, which by nature may not be capital intensive.

I think thr first phase in planninga business should not be in the area of raising capital. I have seen somany people that had the so called capital and yet they didn't succeed in the business they decided to venture into, rather than considering capital first, it is better to look at the technicalities involved in the type of business you have decided to start. Things like location, things like your target audience and lot more. Then one can even partnership with others if there is no start up capital.

 

[sincerem]

Even your mind will tell you their are alternatives when it comes to starting up a business not just taking loans. Those who are operating businesses in a broader must of them started with the funds they raised on their own, everything isn't about loan, I never loved the idea to start with a loan, unless the loan interest rate seems too good., Which means, the repayment interest isn't much, that's what I mean by too good. That's the only time I will consider taking loans for a business which I am familiar with. And again, the repayment date wouldn't be something within short duration of time with lots of terms and conditions that will make me face uphill struggle when it comes to repaying the loan. When I am going for a business loan, I'll choose a favourable one which I can meet up with without having issues with. Not starting a business and I am facing dual issues, making my business capital and how to clear up my loan debt, never.

I wouldn't go into such kind of situation, it is simply diminishing to my business career. Instead I wait, save gradually long term to start without taking a loan.

 

[Kendy]

Taking loans to start a business is something that so many people have ventured into because of no other available alternative but majority of those businesses do not always turn out well because of mismanagement. There are many ways in which one can set up a business without taking loans although the fastest measure is always applying for loans through online apps or traditional methods. The ways are; empowerments, grants, savings and through crowd funding. Taking of loans could be so pressurizing as a business owner is striving to balance the equilibrium between repaying the loans and also making profits.


During the covid-19 pandemic, those who took a loan before the advent of that unforseen circumstances were depressed and in a dilemma of how to recover losses, this is because even though there was a pandemic which affected everyone, the banks or financial institutions will not consider this as an excuse because that is also a business avenue to them, rather the interest rate will keep on increasing if you fail to repay as at when due and you would risk your collateral. Ultimately, obtaining loans is not advisable for start-up businesses but could be more feasible to expand existing businesses.

 

[Chibson]

It is not bad to take a loan in order to start a business but it is important you know the risks of such action and decision. there are a lot of people that have ventured into businesses with loans and they succeeded and there are also some people that ventured into businesses with loans and end up going into bad debt. I think what matters is your level of knowledge and understanding of that particular business. It is important for people that have already thriving businesses to take a loan in order to expand, like I have stated before but advisable for people who are just going into business for the first time because they will be under pressure to make profit and therefore not take the best decisions. When it comes to government loans then anyone can take it because that one does not involve a lot of risk and a
the government gives a lot of time for people to pay back. But when it comes to bank loans there are a lot of disadvantages because they would require collaterals and other things. I know many people who ventured into businesses with government loans and today the business is thriving well.

 

[kayode10]

Loan is a double-edged sword. If you use it properly you are going to sleep a lot of benefits. And if you misuse loan, it can ruin your business and you will end up filing for bankruptcy overtime.

It is too risky to start your business with loan if you are just starting out with no experience. there is a chances that you are going to lose the entire loan and the capital and this game plan due into further debt.

You will not make money with your business and you will end up paying the loan once the business is no more. The best thing is to go for safer route when you are setting up a business instead of taking a loan from the financial institution.

You can bootstrap your business idea. you are going to set aside some fund which you are going to finance The Business when you are sorting out.

if you think this will take you a long period of time you can see please look out for a partner who is having a fund ready to support your business idea. You just have to come up with a plan and agreement on how you are going to share profit.

 

[digipreneur]

It's not compulsory to take a loan for a startup if you have that much amount of funding to start your startup. so there is no need to take funding and there are many small startups that don't take any kind of loan and then also they become successful and also big by time. so as I think there is no need to take a loan for a startup.

 

[btaliat]

To start a business, you may not depend on loan alone. There are other ways money can be sourced if a business is to be started or funded.

In fact, for an intending business man, it doesn't make any sense to start a business with a loan. There is no guarantee that the business will be successful hereby making it difficult to repay the debt and still lose the capital.

Loan is only meant for the expansion of business. This is to show that loan is to be obtained by an existing business owner and not really the intending or a new business owners.

Apart from obtaining loan, other ways of sourcing fund for business include; personal saving. Though, this may only be relevant for small scale businesses, borrowing from families and friends and even borrowing from cooperative societies.