Ability to fail to meet up the repayment of the loan, is a daunting challenge to the business owner. It is very much advisable to start with savings than loan..
Major challenges to start a business with loan.
- Thread starter Hammad1245
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The major challenge I think is the fear of loss or the doubt one would have in mind as to whether you can make it or not and how to repay this money should be business fail
That is the main reason why people avoid to take a loan to start a business. It is important to be sure that the business will make profits that will be able to repay the loan as at when due.
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Major challenges shouldn't be an issue because before you went for the loan you knew what you want to use it for. Only the time to pay back can disturbing
The major challenges one face in starting a business with whom he is the cost of paying back the loan interest most times if the interest is much it is frustrating.
That's why people doesn't like it thstbway. Loan isn't a wise idea for a new business. One can get other alternative other than that to keep operations intact for long time.
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Starting a business is already a risk while starting a business with loan is very dangerous. It is dangerous because all the money generated in the business will be going for the loan and the interest attached to the loan and there will be little money left for the business to move on.
It took me time and discipline to gather my business capital to operate from the scratch. Taking loan during first time isn't the right thing to do, we can save from small until it reaches the target through discipline.
One of my biggest challenge is to start my business with loan is the payback and the high interest that is normally involved when you took a loan.
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The fear of failure in business is one reason that I would never advise anyone to take a loan from a bank because taking the loan from Bank would give you cold feet for you to make very logically sound decisions for your business because you are afraid that the business might collapse from that decision of yours that might likely make their business to be more successful.
There is this constant fear that if you don't meet up with the profits expected in the business for which loan was collected, you're tossed. You'll always be looking restless because it's not your money you used in the business
I always advice people not to start a business with a loan because its going to have a negative impact on the business, imagine having to start paying the loan back with interest when the business is yet to stand.
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Sometimes people were forced to take a loan when they have exhausted all options in raising capital for their business and they are left with no other choice than to take a loan.
You can't say that situation force someone to take a loan, afterall loan is a optional thing. If someone wants their business to grow more, then it is important that they should take loan. But that is completely optional because if you don't want to take loan and carry on with your existing capital, you are welcome too.
When it comes to how one feels as regards loans collected for business, these feelings will vary from person to person. You will always feel inadequate and short of money coming in because these profits you're seeing isn't yours for the moment.
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I understand the fear factor , but most times getting the needed funds to start or run your business could be very tedious and business have no other means than to find a possible means of borrowing loans to start the business instead of letting someone else think of such and start the business ahead, all these needs to be considered
One of the major challenges to start business alone is that when paying back sometimes is the problem when the business is not yied more profit
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That so many challenges involved when you want to start a business with loan because most times people start business with loan without making much profit and to pay the interest rate will not be a problem.
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I understand when needs press them hard the option of taking loans appears to them. That's why it is advised yo always have multi-plans before going into business. And not just starting up a business without making room for emergency savings for the future.
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People were forced to take a loan in the context meant, when they do not not have any other means of raising capital to fund their businesses, they will have no choice than to take a loan to finance the business.
Exactly I am against getting a loan to start up a new business, it is not the best thing to do , is too risky because you are not certain on the success of the business and what will happen if the business crashes.
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