To loan For Business or not?

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waad32

New member
I am planning to start my online home business but I am short of capital. They say, start it with small capital but in baking, ingredients are a bit expensive and you have to buy it by bulk to save money. So I was thinking to sign up for a loan, Is loan really helpful in starting up a business? Please share your thoughts about this.
 

edenmae29

New member
Loan is actually the last option that I would consider because we are aware of the huge interest percentage that will be added plus the processing fees to be deducted on the actual loanable amount. So basically you lose before you can even start up your business. If ever you will opt to applying for loans make sure that it will be for an amount that you can surely pay. You won't like having 80% of your sales for loan payments. For payment arrangements choose the shorter term to lessen the interest charged by the loan company, because the longer the term is, the higher the charges. So these are some advice that I can share with you. Goodluck to your business.
 

junrose123

New member
I think it is a very hard decision to borrow funds to start a business. We all know that starting a business with a credit loan is something that we must think about it. Honestly, I really don't like to a start a business that the capital was raised through a bank or other types of loan because I am afraid that all the fruits of my hard earned sacrifice would just go into the payment for the interest of the loan. As long as possible we should avoid making a loan credit especially when we are just new or just starting up in the business industry. It is much better to receive your hard earned money as full rather than just a percentage already due to some deductions for the credit loan.
 

waad32

New member
Yes, it's borrowing money is really a hard decision. I have to think hard first before making a decision. Maybe, I'll try to ask help from relatives first. Anyway thank you for the advice.
 

waad32

New member
Thank you, I'll take note on that. Besides asking help from relatives who have money, I was also thinking that I might save the sufficient funds first before starting my business.
 

gelotologist

New member
I agree if you're that in need of money for your business and you're also that short then probably the loan would be the best option for it. But you can think other ideas as well, like borrowing on some relatives or making a little more before starting.
 

Mdoom

New member
Describe it in more details. $400 loan does the job for me as i'm crypto investor, for example. And here's a good site with fast loans http://400loan.com/. They provide money in 3 days after submitting the request. And the rates are great too. That's pretty much everything.
 

fishbate

New member
Well it depends on your ability to pay. A loan that supposed to be used in investment is a great help, but you should consider or plan how you should pay it. This will allow you to have a good credit line and at the same time can be use for future purposes.

I have friends that started a business using loan as financial support, some did good but some are unfortunate. Planning and paying your loan is the best way to do it.
 

bernztein_22

New member
I am planning to start my online home business but I am short of capital. They say, start it with small capital but in baking, ingredients are a bit expensive and you have to buy it by bulk to save money. So I was thinking to sign up for a loan, Is loan really helpful in starting up a business? Please share your thoughts about this.

I thought of the same exact thing before. I didn't pursue it though because the loan I was planning to apply for had big interest. If you don't have other means of getting enough capital, you may consider it as your last resort. However, there are important things you have to consider. My top in the list is if the business you're going to venture will be successful. If you are not sure yet if your business will make you more money, I advise you not to apply for a loan. You may end up paying twice instead of getting back what you have invested.
 

Patrik

New member
I personally wouldn't suggest doing that, because you don't know if your business is going to succeed or not, you take a loan only when you are aware of that, if your business fails, you will end up paying loans for something you didn't benefit from
 

Augusta

Active member
I am planning to start my online home business but I am short of capital. They say, start it with small capital but in baking, ingredients are a bit expensive and you have to buy it by bulk to save money. So I was thinking to sign up for a loan, Is loan really helpful in starting up a business? Please share your thoughts about this.
I like that you are thinking about starting a business but I would have prefer you get some money from your family or friends than going for a loan. Getting from friends and family even if you will returned to them later, it without interest unlike having to get a loan that either collateral will be demanded or you will have to return with high interest.
So you weigh your options well before thinking about getting a loan.Another option is getting these raw materials on credit then pay back after sale, this one will need you to be credit worthy.
 

Nova

Member
These days many small and big business are making use of the loan. The reason being none of the people have strong money in their wallet. And the pandemic has made it harder for them to go everyday business. Another thing is that loan can get pretty difficult too. A lot of times loan requires some sort of the collateral. And we have to watch out for the investment, because we have no idea on how the long term investment may work, without loan it would be often harder to scale. So you have to keep loan in mind during that time.

Initially the thing is about staying in profit. If you don't choose to stay in profit. I guess then loan or not, that would give a difficult sign for your business. I'd recommend you to consult with business in your nearby area and learn from them.
 

Josemendez

Active member
The fact is that loan is not quite a good way to start a business because it is demanding , people who borrow loan are not always ready to take calculated risks.

Considering the nature of the business that you want to start , I think if you have market already those who will be ready to buy your product ,then I think you should go ahead and borrow the loan.

Don't forget that borrowing loans needs collateral ,so you have to figure out a way to secure the collateral you are going to use. Baking business has many responsibilities and competition .
 

Alexandoy

Member
I had 2 businesses before and my experience with the capitalization is what I can share in this discussion. For a start up you need to have the amount of capital equal to double of the estimated capital. An example is a small business that needs $1,000 for the start up then do not begin until you have $2,000 in your pocket. You may have missed the incidental expenses, the sundry and the unexpected problems that may affect the growth of the business. If you will start with a loan you have to compute for the interest that you will pay and also the monthly installments.
 

Jnr

Member
I am planning to start my online home business but I am short of capital. They say, start it with small capital but in baking, ingredients are a bit expensive and you have to buy it by bulk to save money. So I was thinking to sign up for a loan, Is loan really helpful in starting up a business? Please share your thoughts about this.
I am planning to start my online home business but I am short of capital. They say, start it with small capital but in baking, ingredients are a bit expensive and you have to buy it by bulk to save money. So I was thinking to sign up for a loan, Is loan really helpful in starting up a business? Please share your thoughts about this.
I am planning to start my online home business but I am short of capital. They say, start it with small capital but in baking, ingredients are a bit expensive and you have to buy it by bulk to save money. So I was thinking to sign up for a loan, Is loan really helpful in starting up a business? Please share your thoughts about this.
Yes its is good and healthy to apply for a loan.. It would boost your business, and trust me the money to refund would come back.
 
In starting a new business there is nothing wrong to get a loan for a new business once you know that the business is viable. So many big business that you here there name globally started the business with loan. Once you carry out your market research and feasibility study of the business and you are very sure of the profit projection of the business you can get your loan and start the business. Business involves risk taken I hope you still remember the higher the risk the higher the return. I surely know that loan attract interest once you are sure that the business is viable then go and get the loan for the business.
 

Janetoje

New member
Getting loan to start a business is a no no for me, the reason is very simple, you are about to venture into something you know little or nothing about and as such, it will amount to a huge risk, in the event the business does not go as planned, what happens to the money, how will you pay back the loan? My advice always is this, if you want to start up a business, try to seek for financial assistance from friends and family that way in the event something goes wrong in the business, you will not be indebted to anyone. If at all loan should be your last resort.
 

Lekhraj19

Active member
In order to start a brand new business, taking loans seems very risky. Even I am a student, but I can tell that this is a great risk situation. And, it has been found that people who took loans for the businesses most of their businesses never grew. It's due to the fact they gave importance to money and capital more than the plans required to start the business. Great businesses never took loans from banks. They found a way out to handle situations.

Although, In India the government is providing loans to new startups but these loans should be avoided in my opinion.
 

Rainlover207

New member
Loan is actually the last option that I would consider because we are aware of the huge interest percentage that will be added plus the processing fees to be deducted on the actual loanable amount. So basically you lose before you can even start up your business. If ever you will opt to applying for loans make sure that it will be for an amount that you can surely pay
 
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