Exactly, and coupled with that the banks that you got the loan from always be applying pressure on you to pay off the loan when you're supposed to pay otherwise he will be getting added extra interest.
Major challenges to start a business with loan.
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Exactly, and coupled with that the banks that you got the loan from always be applying pressure on you to pay off the loan when you're supposed to pay otherwise he will be getting added extra interest.
These are very valid pionts,and could cause someone not to meet up with his obligations of repayment.but most times it is very much advisable to go for loans when you are very sure to an extent about a constant inflow of revenue.
Seriously, when it comes to the uncertainty that faces new businesses, it's something that makes it difficult for new businesses to thrive when it's loan that's used to set it up.
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That is the more reason why it is not advisable to start up a business with a borrowed fund.It is wise to get funds from friends and family members,as this avenue will not put pressure on the business.
there are many challenges especially when starting up a small business,sometimes you will feel discouraged and you will think of not finding it easy to continue,and then you will start thinking on how to quit ,which is not the good way to tackle it up
Starting a business with a loan is a very big problem for some of us myself included. I won't personally advise someone to be thinking of going to collect a loan either for any business
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It is not advisable to start a business with the loan and I won't even advise anyone to engage in it because if you're interested of starting a business ,it is important that you plan and organise the money you will use except you have a good collateral to spare.
People tend to forget that sometimes businesses don't turn out the way we think they would even with the lot of effort we put into them. I cannot ever subscribe to collect loan for any business
The thing is that taking a big loan that is enough to for you to start up a business would actually require a big collateral for that loan and so I think the major challenges of taking up a big loan to start up your business is the challenge of obtaining collateral for such kind of a loan which is quite difficult.
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This is the major reason I do not go for loans, they would say it's risk taking and you must take risk as a business owner, but there is also risk management. What happens if the business does not go the wrong way? I would end up going into more debts
If you start a business especially with a high-interest loan then you are definitely going to be under pressure to perform so that you can repay the loan and interest.
The pressure and tension alone is already enough for me to go against such an idea. You aren't sure if the business will be lucrative or not, and starting up a business usually entails that you're still new to the business and so many things could go wrong in the process
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One of the major and the real challenging fact of starting a business is a loan is that you are not one hundred percent sure if the business will be succesful on time to refund the loan, and if you repay back the loan from the first sales , it will actually affect the market because their won't be eniugh money to restock the market,
Major challenges amongst other challenges to starting a business is the capital espected to start that business. There is also the issue of logical ideas about how to go about the business
Even with the possibilty of putting upfront a collatoral,it is not really a good idea for a business especially a new start up to begine with a loan.Because he has not known the profit margin of the business,and can run into issues trying to settle the loan.
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This is the major issue with taking loans for business startup, you do not know how the business would go. You might not get the amount of profit you have hopped for at the beginning, what happens when things do not go as planned? You would start looking for ways to pay back.
You are right starting up a business with a loan is very risky because of the interest and what if the business did not work out as planned.
factual statement ,starting a business with a loan us very risky,its very simple and easy to collect a loan but very difficult to take it back,that's the reason why I don't take loans ,you might even collect the loan from a bank ,they might put pressure on you .
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There are some loans that you are required to service it with time and as such there might be nervousness because some businesses want to be given time to flourish.
Yes personally I know that it is not the best for any business organisation to start up a business with a loan but there are a lot of people that would like to take the unnecessary risks of getting a loan to start a business.
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