Is it advisable to set up a business with a Loan?

[Thinker009]

I actually think it's adviceable to borrow loan ,if only you feel that the business you are building is profitable and you would get the available return of the loan when you start the business you want to fully

 

[Syldan]

The truth is that, I will not and can not advise someone to start a business with loan or money that is not yours. Sometimes is very risky in the sense that the money used for the start up may lost in the business without profit.

 

[greenie]

One thing i would not advice any entrepenuer whao is just starting a new business is to go and get a loan from the bank,this is because a business you have not run before,the terrian is still very new,and profitability is still uncertain,why begin with a loan.

 

[Shigobad2020]

Setting up a business with a loan is really a bad idea that will boomerang later and affect the business negatively because instead of using the money you ran from the Business to restock your store , you will be using it for loan refund.

 

[Sotherefore]

Setting up a business with a loan really shows that an individual haven't really plan much about the business because if the business owners had a plan about his or her business he would be thinking of the best way to raise money.. this might possess 65% risk of business failure.

 

[Shigobad2020]

I have seen at least two business that was set up with loan crumbled , so setting a business up with loan is not adviseable , you can get a loan to boost an existing business.

 

[Ononivami]

Taking a Loan to start up a business could be very detrimental most especially if the business is a new one. For already established industry, you could obtain loan for it because people already know the product.
Taking loans to start up a business depends on the type of business. For a new business, it's not advisable to start a new business with loans. It may be useful if the business is properly managed and it could be otherwise if not managed properly.

 

[Ebro01]

It is advisable to start up o business with a loan. All you have to do is to do a visibility study on the kind of business you want to go into. In every business it is all about risk,profit and loss. If lucky you are fortunate to get a lucrative business, getting a loan to fund it is okay.

 

[Syldan]

Starting a business with loan, is not the best option and it's not advisable, most times these happened because of lack of financial strength to run a business effectively which lead to such circumstances.

 

[Kunkun]

Most businesses started on loans what really matters is that they don't turn to unpayable debts as a result of the business failure so it's important to have done ones research prior to any investment

 

[CeeJase]

One thing i would not advice any entrepenuer whao is just starting a new business is to go and get a loan from the bank,this is because a business you have not run before,the terrian is still very new,and profitability is still uncertain,why begin with a loan.

Getting a business loan from financial institution is a tricky play because you can never know for sure if a business is going to be successful with that loan.

 

[tyrim88]

Getting a business loan from financial institution is a tricky play because you can never know for sure if a business is going to be successful with that loan.

That is just the basic fact, because it would not be a good decision to start your business with borrowed funds, because you have not been running the business to know the intrigued and market dynamic.

 

[Shigobad2020]

Starting and setting up a business with loan funding is like putting an house on fire , it will definitely affect the business onnthe long run , and thats the main reason why many business closes down,

 

[Sincerem]

Capital is actually one of the factors that has hindered so many promising business ideas from coming to life. Collecting loans from an institution has actually been one of the ways individuals raise funds for their business. Starting a business with a loan is not actually a bad idea.

 

[Syldan]

I don't think there is any business entrepreneur that can ever advise his fellow to go into business with a loan. These is very risky and you may end up the business in payment of loan interest rather making money for yourself.

 

[Shigobad2020]

In my own opinion , the answer is no, because I have seen what a loan does to people's business , so i rather advise people to get fund or borrow from family or friends or cooperative societies.

 

[Setho]

I am somebody who does not by the idea of starting a business with a loan but sometimes you are left with no option especially if the business is something that requires you to inject a large amount of money. You should definitely consult other sources first of all and make loans your last option.

 

[Shigobad2020]

Normally i really dont support the aspect of starting a business with a loan because it normally affects the business on the long run but if its a low interest loan , then that will be good.

 

[Sotherefore]

The question is what if the business is not successful enough for you to pay back the loan you have collected , I hope there is a way you can raise back the money and pay it to the owner ?

 

[Syldan]

Actually I can't because personally I dont so much believe and love the issue of loan collection and I won't even advise anyone to start a business with loan.