Merits and demerits of collecting loan

[Hagson1]

Load is that amount of money that an individual or an organization collect, and to be paid back in due time with interest. It can be from friends, family, relatives or banks. In this life we live in, everything that has merits do have demerits is just that some the merits is far beyond the demerits. In terms of loan it's has the following merits.
1. Its serve as a source of capital in setting a business. An individual that want to start a business can collect loan from the bank in starting his business which after some time as the business gets stronger he will pay back to the bank he collected the loan from. 2. Profit Retention: When you raise funds through equity you have to share profits with shareholders. However, in a bank loan raised finance you do not have to share profits with the bank. 3. Benefit of Tax: Government makes the interest payable on the loan a tax-deductible item when the loan has been taken for business purpose.
Demerits of loan
One of the demerits of collecting loan is that, if the business is not well stabilize and the business collect loan from the bank it will be diffult for that business to pay back the loan.

 

[Jasz]

The greatest advantage of getting a loan is the ability to make your dreams come true. Maybe you've always wanted to start your own business, but the startup costs were too much for you to handle alone. Maybe you have an idea for an art project, but you don't have the money to buy the supplies you need. Or maybe you've always dreamed of traveling the world, but flights are just so expensive!
With a loan, none of those dreams have to stay dreams. A loan can be used as seed money—the initial funding that helps get your ideas off the ground and into reality. With a loan, you can finally make all of your ideas happen, and we can help you get there.

The biggest downside is that loans have to be paid back and interest comes with them. It's important to do your research before taking out any kind of loan so that you understand what it means for your finances in both the short-term and long-term future.

Also, One of the advantages of taking out a loan is that you can keep your cash in the bank and still get the money you need for things like a home or car. You don't have to risk losing any of your money, and you can pay off the loan over time with manageable monthly payments.
Also, if you take out too many loans at once, you could put yourself in financial trouble by taking on too much debt. That can make it difficult to get more loans in the future, which can limit your buying power, and affect your credit rating.

 

[Abigael]

Everything in this world truly has its merits and demerits. It is just that some merits outweigh the demerits and so we benefit from that. Therefore, we have to assess these two well so as to know which one outweighs the other, then we can make the right decision.

In terms of loan to start a business, sometimes the demerits are too much. For example, it can cause so much anxiety when running the business due to the pressure of paying back a loan. Therefore, causing one to run the business badly.

But sometimes taking loan is your only option when you have a good business idea but with no capital. So you just take the loan but with a plan on how to pay it back. That becomes a great advantage of taking loan for business.

 

[Sotherefore]

Well there are some circumstances that we may not likely have any other option than to get a loan but this should not really be something we have to plan doing all the time and should only be done whenever we see the need and not necessarily all the time.

I have said this before that I believe the only way people can be able to get a loan to start up any of their business is when they are hundred percent sure of making the required money needed to pay back the loan but a situation in which you can't be able to do this then is not the best to take a loan , it's better for you to start up a business with the little amount of money you have.

There are so many disadvantage if we are not able to pay back the loan we have collected and as such it is always advisable that we refrain ourself from getting a loan that would put us in serious trouble. I haven't taken a loan before and I don't even plan on doing that . Whatever money I need to start up a business I have to raise it on my own or through support.

 

[TOZZIBLINKZ]

Whether it is a business of personal loan the actual act of collecting alone can save and rehabilitate a particular individual or a particular individuals business . Loans no doubt is a source in which an individual can use to revive his or her business or personal life . A most developed country the government of such country have put in provision in existence personal and business loans institution and have gave them the authority to issue out personal or business loans to members of the public .

What what characteristics or feature about a loan is that it must be paid back but with interest . Before an individual collect a loan he must make sure to think of a way he will pay back the money if what he intended to use the loan for doesn't turn out positively . In the process of thinking and not being able to find a way to repay back the loan it is best advised not to even collect the loan at all so as to avoid further complications and misunderstanding . If an individual go ahead to collect a loan without thinking of a way to repay back the loan if what he intended to use the loan for doesn't turn out positive , that individual is falling into devastation .

 

[Augusta]

Just like any good thing loans has two sides the good and the bad but the good thing is that the good always outweigh the bad. Loans can really help when it comes to growing and expanding a business. i know how loans had helped my dad years back when he needed to grow his business, when the loan came it did in the right time and everything that was needed to fix in the business financially happened.

But the bad side of loan is using it to start a business, if you are not careful you might run into a huge debt as the business might go south and you can't recoup the money paying back the loan become a huge problem. it is even worse if you left your treasure as a collateral, you would have lose your business and the asset used as collateral. it can't be funny losing these things.