Recast Your Minds - Did You Start Your Business With A Loan?

[Rachael]

Here on this forum, there are some of us here who own businesses which could either be offline or online. Setting up a business is not a day's job because Rome was not built in a day. There are certain factors that has to be put in place and certain challenges ascertained in order to find preventive measures. For all this to actualize, we need funding or capital to set up the business. One of the biggest challenges that comes with setting up a business is either limited funding or no means of funding at all. This has made so many creative business ideas go down the drench.

However, there are many ways in which funding can be obtained and the most popular method is through obtaining loans from financial institutions or from friends and money lenders. Well, to me this might not be the best option because of the pressure of striking an equilibrium between making profits and repaying the loan. Other ways of raising funds could be through; crowdfunding, opting for an investor, partnership with someone so the cost can be borne by the both parties or through empowerments and grants from the government. We all have our stories how our business was set up and I would like to know if it was strictly through loan and what was the impact it had on your business?

 

[Augusta]

No I never started my first business with loan. When I wanted to start my business and was contemplating starting it with loan I discussed it with my father and he advised never to start a business with loan. He told me from experience it isn't advisable to start a business with losns that you might be complicating issues by doing that

So right from that time I understood that it isn't the best thing to do. You don't just start a business that you are yet to make a headway with, with a loan that will need you paying back even with interest. The best bet will be to get your little savinggs and get the support of family members to start a business. You would need to start out small first to see if the business is a viable one and make all the mistakes when it is still small than with banks money.

 

[Kendy]

Two years ago, when I was running or poultry farm, I have always said it here before that I actually took up a loan to start the business and it was one of my greatest mistake. It was just so unfortunate that it happened few weeks before the uproar of the covid-19 pandemic and it was a very great obstacle which eluded the success of of the business. It made the business static because people also felt pessimistic to eat any livestock because of the fear of contracting the virus. The loan I got to start up my poultry farm was from a financial institution and although the interest rate was just minimal, it was still really difficult to balance the equation between making profits and also repaying the loan.


It was so difficult because even the feed which the chickens consume was really scarce and to see it to purchase, was like double of the initial price which made me incur more losses rather than gain. It was a very trying time and it was also an experience or lesson that would not be forgotten in a hurry. I think the best way is raise funding or capital to use your personal savings or better still through crowdfunding or empowerments from government.

 

[Augusta]

I don't think we have to allow an experience to personally happened to us before we can understand things to avoid them. Before now I have always of the view that one can use loan to set up a business but from seeing how this acto9n wreck some people around me it has really changed my mindset on going this route.

Using a loan to start a business isn't advisable at all, because most loans come with early repayment period, the interest is mostly high and a new business doesn't need reduction of capital as fast as the lenders of loans will need. sp it better to avoid running into debt I'm the name of borrowing money or taking loan for any business.

For me loans only help for expansion of a business where you are sure you are making profit but where you are just starting without any established customers it kind of a problem. Because if you fail, you would still have to pay back the banks loan. There's no two ways about it. So I will never start a business with loans.

 

[Ithedicious]

Wow, I am beginning to enjoy this forums because it is just a thrilling experience for me to read the comment of others concerning their challenges in life and from there you also learn from their experience , because this will really help me to gain some understanding about so many things that I will like to observe in my business when I have to start a business in the future .

Unfortunately I may not likely be able to contribute to the discussion here because I've not started a business before with a loan, so I don't really understand how it will be for people to start up a business with a loan . But to me I just believe that when proper arrangement has been made then starting up a business with a loan won't really be a big deal because your research will help you understand the type of products that will be high demanding on the location you are willing to establish it.

I will follow up this topic continuously at least to gain more experience concerning starting a business with a loan as this will really help me in the future if I am to start up a business or engage in anything.

 

[Sotherefore]

Well, as I really understand I have never even start up a business before, so I have not started up a business with a loan. The reason is because starting up a business with a loan comes with its own disadvantages and this is what I have been trying to avoid.

I do not just need a situation that at the end of the day I can't even pay back the loan I have collected because of one reason or the other, or just because the business is not able to provide the necessary profits to pay back the loan.

I always put so many things into consideration when dealing with things and one of the things I always like to put into consideration is a situation that I am not able to pay back the loan I have collected, it could likely put me in jail or I may likely fall into a serious problem and that's what I have been trying to avoid.

In most cases I know that is always the only option but we shouldn't just make it as the only priority for us to be starting up a business with a loan because I don't really believe in loans.

 

[moneyteam]

I started my business with a loan from family and friends. It can be tough to get a loan from a bank when you're starting a new business, so it's important to have a good business plan and to be able to show that you're serious about your venture.
There are a lot of resources out there for small businesses, so don't be afraid to ask for help. The SBA is a great place to start, and there are also lots of online resources and local organizations that can help you get your business up and running. Good luck!

 

[allison001]

For me I do not have a business personally and I have never even plan of starting a business with a loan. Even if I have to start a business , I'll put so many things into consideration and I'll try as much as possible to work hard to save all the necessary money I need to start on my personal business because to me starting a business with a loan is a threat to my peace of mind and I wouldn't need anything to interfere with my peace of mind because that is one of the most valuable thing for me.

A lot of people can take risks and succeed in this way, yes depending on the thier life arrangement. Everyone have their own life plans and preparation and what they are interested to achieve in life..

For me anything related to loan is something I will never put into consideration in my life now.