Is it advisable for an Entrepreneur to get a Loan to start a Small/Medium Scale Business???

[Oluwatobitosin]

Starting Small/Medium Scale Business in my Country isn't that easy as it may not grow or rather at times not be profitable.
When an Individual wants to get a loan to start a Small/Medium Scale Business, I think such Individual should already have means/strategy on how to pay up the Loan as soon as possible, so as not to cause irrelevant embarrassment and insults.
Is it advisable for an Entrepreneur to get a Loan to start a Small/Medium Scale Business???

 

[Henrywrites]

I dont support getting a loan to start a business. Personally, it doesn't look good for anyone who has done that in my area as they are always struggling to pay up. So, why would I support another getting a loan when those who did are struggling to pay up?

 

[Nomad]

I got a loan to start my business and I failed. I was unable to pay the loan and I ended up selling my asset to pay the loan. There is a lot of risk in using a loan to start a business. It can take months, even a year to start generating profits, however, you are required to pay your loan from the first month.

 

[Heatman]

Unfortunately, I am never going to be the enterpreneur who is going to be interested in applying for any amount of loan in order for me to start a business.

I always prefer to use my hard-earned money which I have saved to start a business in case the business doesn't work out the way I have planned, I wouldn't have any debt to pay off.

 

[Good-Person]

Unfortunately, I am never going to be the enterpreneur who is going to be interested in applying for any amount of loan in order for me to start a business.

I always prefer to use my hard-earned money which I have saved to start a business in case the business doesn't work out the way I have planned, I wouldn't have any debt to pay off.

I will also never advise anyone to obtain any kind of loan. Starting a business after obtaining loans is a kind of a bad decision and it is quite risky as well. Many people may never realise this fact and they end up paying high interest and this is why I hate interest so much.

 

[Heatman]

I will also never advise anyone to obtain any kind of loan. Starting a business after obtaining loans is a kind of a bad decision and it is quite risky as well. Many people may never realise this fact and they end up paying high interest and this is why I hate interest so much.

Being able to obtain a loan to start a business is not the biggest challenge but actually running that business to become profitable in a way you can be able to pay back the loan is the most challenging aspect of everything. In a situation whereby you're not able to do this, you will have yourself in a serious problem of paying off a big debt.

 

[Good-Person]

Being able to obtain a loan to start a business is not the biggest challenge but actually running that business to become profitable in a way you can be able to pay back the loan is the most challenging aspect of everything. In a situation whereby you're not able to do this, you will have yourself in a serious problem of paying off a big debt.

There are many people who may also advise taking interest-free loans. However, the main problem here is the fact that such kinds of loans are still pretty risky and people should obtain such kind of loans until or unless they are able to pay it back.

 

[Heatman]

There are many people who may also advise taking interest-free loans. However, the main problem here is the fact that such kinds of loans are still pretty risky and people should obtain such kind of loans until or unless they are able to pay it back.

I don't know if there is anything like an interest-free loan in my country because everything that I've heard about the loaning structure in the financial sector will always come with interest that you have to pay off at a specific period of time, otherwise it is going to keep increasing.

 

[Ektalakra]

It can be advisable if the entrepreneur has a well-researched business plan, a clear repayment strategy, and confidence in the venture's profitability. However, careful consideration of risks and realistic financial projections is essential before taking on debt.

 

[Henrywrites]

It can be advisable if the entrepreneur has a well-researched business plan, a clear repayment strategy, and confidence in the venture's profitability. However, careful consideration of risks and realistic financial projections is essential before taking on debt.

If all things are equal, we are not going to have people open businesses, and at the end of the day, the businesses will fail. This is why one should think deeply before they decide to borrow to start a business. I don't see any reason one should be doing it at all.

 

[Good-Person]

I don't know if there is anything like an interest-free loan in my country because everything that I've heard about the loaning structure in the financial sector will always come with interest that you have to pay off at a specific period of time, otherwise it is going to keep increasing.

It is possible to get an interest-free loan. However, the fact of the matter remains that such kind of loans cannot be obtained from financial institutes or commercial organisation as they are really hungry and they always want to earn interest. You can obtain interest-free loans from your family members.

 

[Heatman]

It is possible to get an interest-free loan. However, the fact of the matter remains that such kind of loans cannot be obtained from financial institutes or commercial organisation as they are really hungry and they always want to earn interest. You can obtain interest-free loans from your family members.

You are very correct with this assessment because I was thinking initially that you are talking about getting such interest free loan from financial institution. I know it is totally impossible for you to get such a loan from financial institution but when it is from your family members, you can definitely get a loan without having to pay them interest on it.

 

[Ja Sa Bong]

If anyone is interested in applying for business loan to start their business, they are free to do so but it's not and can never be how I would choose to fund my business. Self funding is how I've started any business I had.

 

[Heatman]

If all things are equal, we are not going to have people open businesses, and at the end of the day, the businesses will fail. This is why one should think deeply before they decide to borrow to start a business. I don't see any reason one should be doing it at all.

The problem with some people when it comes to making a decision to borrow loan in order for them to start a business is that they don't have a very good plan on how to repay that loan in case the business they want to invest the money doesn't work out according to their plan.