Reason Why You Don't Have To Start A Business With Loan.

[Sikapa]

Starting your own business I a kind of good idea because is hard to even find out a good job today. Most people are writing numerous applications for employment but still have no jobs to you know why? Some of their letters are not even opened yet. In the government sectors, the retire age is somewhere 60 years but you will still see 80 years old man who has dyed his hair sitting in the office claiming he is now 45 years.

Many university graduates are moving around idle with no job still depending on their parents which is a great burden.
Therefore, if you have the idea of establishing you own business the an is good. But is very advisable to start your business with the little money that you have save rather than going for loan from the bank or any organization.

Someone may ask why? Is because if you are to start a business, you don't really know how you market will grow meaning you are new in the market system and being in the market system is different from viewing the market from a perspective.

At times you may go for the loan and things will never happen the way you thought it would and your and the bank will start putting pressure on you.
So just enter into the market to see if additional money can help before you can go for loan.

 

[Good-Guy]

Well, I have never heard about a man who is 80 years old and still doing a job by claiming that he is 45 years old. I think the government has a proper way to determine how old a person is. So, until or unless a the government does nothing, I am sure that people would get retire at the proper age. As far as loans are concerned, I do not think that you can start a business only by getting a loan. There are many ways to start a business and my best way to start business is by saving money and utilising the personal finance in order to start my own business. there are many advantages of using your own money.

First, when you borrow money, you need to agree to the terms and conditions of the lender. Otherwise, you will not get money. Many people borrow loans and get into big trouble when they become incapable to return the money. Some people seek business grants but getting a business grant is not an easy job. Moreover, not all the people are offered business grants. This is why I think that using your own savings is the best choice to start a business.

 

[Mika]

Let me ask you just one simple question. If you want to start a business because you do not have a job, how do your supposed to start a business when you are already a burden to your parents (because you are not generating income)? How do you suppose to have little money left when you do not have a job? If you are a graduate, and if you have good grades, your first priority should be getting a job because a job is the most secure form of income because you do not need money to get a job and there is also no risk of losing money. I understand getting a job is really hard in many countries. For instance, in my home country unemployment rate is as high as 20 percent. However, after graduating from college, I managed to get a job in three months. If you want to increase the chance of getting a job, you need to enroll in courses that pay good money, you need to develop skills that are in high demand. You also need good grades because no company is willing to hire someone who has C or D in his certificates.

 

[Ithedicious]

For me , I do not see any reason why people shouldn't start up a business with the loan , but the most important thing is just the organisation , that will determine the success of everyone.

If you are interested to start up a business then getting a loan to start up a business might really help you to achieve something much more faster than starting up with your little saving . If you are starting up something with your little capital that means you have to waste your time to grow that business for it to attain a reasonable standard.

whereas you could have gotten a loan to start up the type of business you are interested , only when you have made adequate plans and preparation concerning the business.

Personally , if there is needs in the future to get a loan and I have a good collateral to give in place for a loan , I will definitely get a loan to start up any type of business I am interested only if I do not have enough capital, that is needed for me to start up my business successfully.

Management of business determines business success and not really .

 

[TOZZIBLINKZ]

Personally or to me , I do not advise anyone to initially establish or implement his or her business idea with money or capital borrowed from the bank or from private individuals . it is actually a huge risk to take , to borrow money from bank or from private individuals just to established the business idea of your choice because possibilities are the business idea you intend to establish may not go as planned or expected leaving you frustrated , remorseful , confused , and devastated on which way you will be able to pay back the loan you have borrowed from either the bank or from private individuals who may possibly be your friends , colleague , or family members .

But if you have no choice but to borrow money from bank or from private individuals to fund your business idea to establishment or implementation , you must understand that your business idea may not go as planned or expected , and you must also ask yourself the question of what next to do if your business idea do not go as planned or expected , and what are the ways that you will be able to pay back the lenders if your business idea does not go as planned or expected , in the absence of not being able to answer this question it is advisable not to borrow at all .

 

[Chibson]

I have always been against people starting businesses with loans because of the numerous disadvantages that comes with it especially when you are someone that is a newbie in business.

The truth is that it is quite okay and fine for you to take a loan to expand your business if you are already in business and you are succeeding. there are a lot of disadvantages that comes with starting a business with a loan and one of them is that your bank will probably put pressure on you.

There is no way you can be able to succeed in business if you are under pressure because you will not be able to think straight and strategically in order to take your business to the next level.

It is better you start a little business and from there you can have proper knowledge and understanding of how it works and grow it organically. If you take thousands of Dollars to venture into a business you may actually over employ people which may be a very bad decision for your business finances.

If your business is already becoming successful and you want to expand it in order to be able to compete with competitors, then it is quite ok because there is an insurance that you will succeed.

 

[Faith B]

You are right, starting a business with a loan is not a right decision one should make. It is not a risk I would advise anyone to involve in. it might wreck you down and then you will start to look for a way to pay your loan and then you are back to square zero

 

[Kingsley]

To be candid the situation is terrible when we take a very good statistics of the unemployment rate in this country today, the true figure of the unemployed is a far outcry of the over 40,000,000 unemployed youths in the country today. And the issues are even getting more complex due to the fact that many of this people that finds themselves in the category of the unemployed are strongly becoming unemployable by the day as there seems to be a very high level of brain drain in the country. The idleness of this youth energetic class of people has made many to result into other forms of social vices that are detrimental to the growth and advancement of the country.

This has made so many people who do not even have the requisite knowledge of starting a business, to venture into it and 90% of the time such kind of people always fail in their business ventures. There is also no true medium to access loans from the government. All these issues will largely be blamed on the government as this is also the primary job of the leaders, they are to provide enabling environment for all forms of legal business to thrive.

 

[Setho]

There has often been a very long and heated arguments about the right way in which you are supposed to get the required capital in order to start your business . The truth is that I am not going to advise anybody to start a business with a loan if there are other ways in which you can be able to get money in order to start the business .

If you are having an offline job that is paying you decently then you can at least wait for a year or two in order to accumulate today required money in order to start your business but then it is not everybody that is having a well-paying job in the first place .

You can also be able to secure funding for your business by going into partnerships with people that has the adequate liquidity . There are people who are going to be more than happy in order to kickstart the business together with you if they believe that your business idea is a good one .

The overall thing is that if you are not able to get money through all this means then there is nothing by in starting a business with a loan but you should just ensure that it is favorable .

 

[Augusta]

For me I continue to be against the idea of taking out loans to fund a business it isn't advisable from my experience and that of others. so I have huge reservation for starting a business with a loan because it comes with high interest and a timeline for repayment.

A new business would not work with this kind of working capital because of lack of stability. You would need to have the money in the business for a period of time before you start sending the money out. but with loan you might have a repayment timeline that will need you starting payment almost immediately. So you are paying out your capital and maybe yourprofit almost immediately.

Another thing about getting a loan is that you might not even get enough money that will progress the business, since you might not get the right collateral to get something substantial. A business needing more money to run it without having it might be difficult to run it hitch free. This will be more of a forceful thing as the money available might not give it a smooth run. But this is not say that you shouldn't just start but try to patient with the rate of growth of the business.

 

[btaliat]

People may have different view on whether loan is a right choice when it comes to financing a business or not. Truth be told the both sides of the story is always correct depending on the expertise of the person saying it. Inhabe argues for and against obtaining loan to start a business.

When I argued for the obtaining of loan for business, I corroborated my stand with the fact that loan will ensure achievement of dream of starting a job. Aside this, it may even ensure hardwork. This is because most people that obtain loan always make sure they repay the loan. Here by try their best to be hardworking in order not to renege on the promise of repayment.

As careful as I am or want to be while discussing this topic. I never encourage obtaining loan as a means of starting up a business. It is the last resort I do see it. This is because I know the damage obtaining of loans can cause. I know it can be of bad effect to the obtainee. There are some people who the interest of the loan has made them not to even make any profit and w eventually run into losses.