Loan is the secret to business development.

Ahmedo24

Well-known member
It is mostly advise by experts and also financial or lending institutions that start up should not take up loan but they should start up their business with personal savings , this is actually a fact because more 60% start up don't break even in their business before the stated time to start paying back loan so they become frustrated and eventually fold up.
However , if you have a stable business with full potentials you can easily take up loan infact lending institutions will rush to give you such loan because of their percentage profit, you can quickly use this loan invest or expand your business make double of that money in short time and return their money to them .This is the secret to most big and sucessful businesses so far.
 

Abigael

Well-known member
I agree with what you have said here. Taking loans for a startup business is not an option that is good. The business will not breakeven easily and you may not succeed well hence have trouble paying back the loan.
Taking the loan when you already have an established business is the best option ever. You just take it and expand your business the pay back the loan using the profits earned. Indeed most of the banks and loan lending organizations usually trust the people who already have a business running. They give them the loans so quickly.
 

Riya Shah

New member
For any business development activity, steady cash flow and liquid funds come in handy. In the absence of the same or to mitigate later risks, one should look at the benefits of the easy collateral-free business loans. One can apply with online platforms like Lendingkart and receive quick disbursal.
 

btaliat

Valued Contributor
I hardly see successful business owners that have never taken loans. You take loans to expand your businesses, you take loans to increase your cash flows amidst other reasons. But while obtaining loans, the business strength must be considered. This will let the business owner know the exact loan the business can afford to obtain and also know how the business will be repaying this loans. Whether or is yearly or monthly or even quarterly installment the business owner want to embark on while paying the loan.
 

Kennysplash

Well-known member
Every business needs constant innovation and ideas and you need funds to keep on with it. So if you don't have the means you have no choice than to go for loans. There is this stigma that people have placed on loans as if it is something negative. A lot of people are making it through loans, you will see many business people applying for these loans to boost their business because they know they will make enough profits even after they've returned the loan. So as long as you know what you are doing, getting a loan can help you boost your business.
 

Mataracy

Well-known member
Both is important but I can still say that skill should be first now are days especially if you Dont have anybody to finance your education.
The first thing you need you need to do is to have skill that learn how to do any handy work do has yo support your self. Now a day when a graduate don't have any work to do but those that has a skill before or during their education are enjoying them self because they can easily convect things to money and make a living through it.
 

Ahmedo24

Well-known member
Every business needs constant innovation and ideas and you need funds to keep on with it. So if you don't have the means you have no choice than to go for loans. There is this stigma that people have placed on loans as if it is something negative. A lot of people are making it through loans, you will see many business people applying for these loans to boost their business because they know they will make enough profits even after they've returned the loan. So as long as you know what you are doing, getting a loan can help you boost your business.
I don't or can't argue the fact that most already existing business make more progress through loans either from the banks or from other financial lending organizations. They do so because their businesses are already established they have security in the form of collateral. The new business mostly finds it very difficult to survive it starting a business with loan simply because they face challenges which are hidden before starting the business and some are scared to take risk to grow the business before of fear of failure of which loan repayment keeps ringing on their brain.
 

Doradorwa

Opportunity seeker
I don't see any reason why one should not be able to take for a business,but, it must be a business that is already established... Using a loan to start a business is the most terrible thing to do because you'll have to use your business profits to pay off the loan then use the loan capital to pay the main loan... By the time you are done paying you'll see yourself back to square one.
 

lamia5765

Active member
Loan is not a profitable business because in most of cases you will have delay in pay of loan from person you borrow to him money and this causes loses to you.
 

Peppul

Well-known member
Your points are good and I agree with them. For me personally I always do my best to stay away from loans no matter what, loans are tempting to take and it's fun when spending money you didn't work for but when it's time to pay back it becomes something difficult to do. If you are planning to take a loan for business startup this is what I always advice, make sure you have a collateral that is equivalent to the amount of loan for are taking or bigger than the amount of loan you are taking because starting a business anything can go wrong, so that should in case you find yourself in that situation you will have something to sale and cover up your loan payments, but if you don't have its advisable not to take loan to start up any business no matter what, best is work and save for some period of time then start your business.
 

Maven Tiger

Member
It is mostly advise by experts and also financial or lending institutions that start up should not take up loan but they should start up their business with personal savings , this is actually a fact because more 60% start up don't break even in their business before the stated time to start paying back loan so they become frustrated and eventually fold up.
However , if you have a stable business with full potentials you can easily take up loan infact lending institutions will rush to give you such loan because of their percentage profit, you can quickly use this loan invest or expand your business make double of that money in short time and return their money to them .This is the secret to most big and sucessful businesses so far.
@Ahmedo24 financial institutions doesn't just give loans, but they check if the business in question have the necessary requirements to secure such an amount.
Credit worthiness of the business will be properly studied by the institution to ascertain that the funds given to the business won't become a bad debt.
 

Ahmedo24

Well-known member
@Ahmedo24 financial institutions doesn't just give loans, but they check if the business in question have the necessary requirements to secure such an amount.
Credit worthiness of the business will be properly studied by the institution to ascertain that the funds given to the business won't become a bad debt.
Definitely, the processes you made mention of are more like what is practised everywhere in the world or in most countries. Financial institutions give out credit facilities to already established businesses that needs expansion though in rare cases government partner with banks by releasing funds them to give out loans to new businesses while they also monitor the repayment of such loans because some people don't like paying back if they are aware it government loan.
 

Maven Tiger

Member
Definitely, the processes you made mention of are more like what is practised everywhere in the world or in most countries. Financial institutions give out credit facilities to already established businesses that needs expansion though in rare cases government partner with banks by releasing funds them to give out loans to new businesses while they also monitor the repayment of such loans because some people don't like paying back if they are aware it government loan.
I think there are special institutions setup to monitor such funds especially the ones that are meant to develop a specific sector of the economy for it additional gains or social benefits. When you see government encouraging financial institutions to give out loan at low interest, there is always a motive behind it and most times it is for expansionary motives or corporate social benefits that is attached to the business. Government uses this method rather than subsidize some cost or reduce taxes meant for the company.
 

marcusfe

Well-known member
You're right by your claim but I will never support it that loan is good for a startup business. Most times loans usually turn up to become a trap for small business owners. Why will you go and get a loan for the business you have not even started at all, you're not even sure if the business will survive or not. The financial institution from where you obtained the loan will not want to listen to any I your story I you fail to pay back at the appropriate time.
 
Top