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

[Chibson]

You have made a good point. However, if you must take loans, it might be better to get it from family members or friends instead of banks. This is because banks and other financial institutions charge very high interest rates.

if your family members have the money to give you in order to venture into a business then that is good but in a situation whereby they do not have, you need to take from a bank but you must have a very good collateral.

 

[Shigobad2020]

There are some entrepreneurs that doesn't have enough money to set his nor her business and there is nobody to invest in the business , then hes or she has to get loan to start

 

[tyrim88]

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

That is just a fact though,but if you want to look at it critically,you will get to understand that majority of busineses that started out with loans do not really make it for long,that is because they did not get a proper understanding of the terrian before such loans.

 

[greenie]

I don't think it's advisable to take a loan for a capital to start a business. Source for any other means of getting your capital but notwithstanding, getting a loan for a business capital will make you restless thereby making sure your business is profitable in order to get the loan paid back in due time.

 

[Sotherefore]

With external source of paying back the loan yes it could be advised. Without external source of paying back the loan then it is not advised because normally loan shouldn't be paid back immediately with a capital that have been used in starting the business.

 

[Shigobad2020]

I don't think it's advisable to take a loan for a capital to start a business. Source for any other means of getting your capital but notwithstanding, getting a loan for a business capital will make you restless thereby making sure your business is profitable in order to get the loan paid back in due time.

Taking a loan to start a business might be dangerous most of the time because the increment in the type of loan might affect the business negatively and might sometimes ruin the business.

 

[tyrim88]

Hmm getting capital to start up a business us quite frustrating in the part of the world but still won't advise anyone to start up a business with a loan.

One of the things that i usually advise new business owners is that they should try as much as possible to be able to make use of the avialable resources thay have in making their business to grow gradually rather than taking loan from the bank.

 

[Agbalagbaa]

I don't think so, if you have a way to raise your own capital I'll advise you to do that, taking a loan to start up a business is not a good idea for me, but if you are ok with that you can go ahead.

 

[Shigobad2020]

Though i don't really like loan becuase I have been a victim, but I you have a well detailed plan for your business and for the repayment of the loan , you can handle it perfectly .

 

[Skysaint]

I would always preach against that because I have seen those that really got dealt with because of this very act. When starting up a business, you should use the little you have and after establish I the business you can now take loans to develop it the more.

 

[Joseph555]

Source for any other means of getting your capital but notwithstanding, getting a loan for a business capital will make you restless thereby making sure your business is profitable in order to get the loan paid back in due time.

 

[frederick_9]

A business you have never ran before, the industry is still relatively new, and profitability is still questionable. Therefore, I would not advise any entrepreneur who is just starting a new firm to go to the bank and receive a loan.

 

[Amanda]

If you don't have good guarantors or collateral, it can be quite difficult to obtain financing from banks in my home country of Nigeria to establish a business. So taking out a loan from the bank is not recommended. The successful operation of the business will be hampered by attempts to repay the loan.

 

[Mohammed Rashid]

Yes, if that's your last option.
Try other options first, such as asking friends and family for donations, applying for grants from the government, or using personal savings.
is recommended I'll explain why. The only type of borrowing that is recommended is borrowing to invest, provided that you have a good understanding of how to manage that investment. By doing this, you can increase your capacity because you are investing in a project that will yield returns for you.

 

[Shigobad2020]

With my own little knowledge in the line of business, there's nothing bad in starting a business with a loan if you have a knowledgeable plan to return the loan you got .

 

[Eli342]

Both personal loans and small business loans can be used to effectively cover startup costs for your small business. Your decision may be influenced by how much cash you truly require, where you can get the best interest rate, and whether you want to risk your own credit.

 

[Sincerem]

For new business I despise it because loans is risky most especially when you use it to establish a business in which it future potential is not known. It is rather advise that loans should only be used after a business has been already established and its future potential is sure.

 

[Chibson]

It is advisable I'll state why. Borrowing to invest as long as you have a solid idea of how to run that investment is the only advised type of borrowing; that way you are expanding your capacity because you're investing on something that would bring in returns for you

Probably, if you have a solid business plan there is nothing wrong with you borrowing. So many successful businesses around the world today actually started off by using loans.

 

[Alisco]

It is not a bad idea to request for a loan and start a business. Ones you have an idea that when you put into consideration and actualise it will bring you profit and at that point of a time you have no capital investment, loan is the only way out.

 

[Ebro01]

Well it's advisable to borrow a loan to start a business, the income and expenses which is been incured from it. It might be very difficult to get or see partners that can help for capital. Borrowing will be preferable to start a business.