Major challenges to start a business with loan.

[Godspower]

Yeah, it can be so demanding to have to pay back a loan when your business is not yet well established. That is why I prefer starting the business with other sources of capital.

This is a good point. But what other sources of raising capital would you recommend apart from borrowing from financial institutions?

 

[Good-Person]

Bad debts is one of the major disadvantage of taking loans and getting a loan approval may also take time and this can be a time waster in case you need urgent money. This is why it is better to save money and invest rather than relying on loans.

 

[greenie]

if you're starting a business, it's virtually impossible to get a loan from a bank or online lender in your company's first year. Lenders require cash flow to support repayment of the loan, so startups are typically disqualified from financing.

 

[Smiles20]

On my own opinion I think it is the nervousness that usually comes with it. This is because you are going to be struggling to pay the loan and also the interest that is attached to it again.

 

[kayode10]

Unforeseen circumstances will be the major challenge you are going to face if you are using loan to start up a business. Something unexpected might come up and this may prevent you from making regular sales. When this happen it can be very hard to pay back the loan on time.

 

[Bousine123]

I have seen scenarios where people borrow money to start up a business at the end when the business crashed, the bank came and took over all their properties

 

[kayode10]

I have seen scenarios where people borrow money to start up a business at the end when the business crashed, the bank came and took over all their properties

This is so sad it is only God who knows how the person will be feeling right now. Loan is a double edged sword. it can contribute to the success of a business and it can also be the causes of downfall of the business.

 

[Shigobad2020]

There are many challenges in starting a business with a Loan most especially from a loan shark , and the problem will start occurring when you wanted to start refunding the money, that same time you will need money to restock your store , I you pay the loan ,my our store will be empty.

 

[tyrim88]

To be honest, In all ramifications, it is not that advisable to start a business with bank loan. Business is unpredictable, it may yield profit or loss depending on various factors. Inability to repay loans secured from bank may put the business owner in problems he doesn't even prepare for.

One of the things that i will advice new start ups is that,we should aviod taking loans from financial institution,because the terian has not been properlly studied and a strategy for revenue generationhas not been put in place,this could affect the repayment plan.

 

[Syldan]

Actually there are so many challenges when starting a business depending on the kind of business you are dealing with. thete are financial challenges, government policies, location and lack of patronage.

 

[Setho]

The conditions that are attached to the loan I think are the most important things for you to consider. If it is something that you can be able to cover then you can jump into it immediately.

 

[Shigobad2020]

The issue of refunding the money is the main issue when you get a loan to start a business, most of the time , it gets too hard for most of the business enterpreneur to pay back .

 

[LadAckerman]

I believe the bottom line is that both personal loans and small business loans are effective ways to cover expenses to get your small business off the ground. Your choice may come down to how much money you actually need, where you can get the lowest interest rate and whether or not you want to put your personal credit on the line. This should cover it.

 

[Shigobad2020]

One of the major challenges that's there in starting a business using a loan is the interest attached to the loan , and asking yourself ,can the business you are about to start pay for the loan,

 

[Syldan]

Actually starting a business with loan is not good and also not advisable because of so many difficulties 5hat you may encounter at the process of the business and also paying back the loan which will definitely affect your savings.

 

[Shigobad2020]

The paying back of the loan is the major problem with using a loan fund to start a business , most of the time , the time of payment actually clashes with the time you want to restock your store .

 

[Sincerem]

The paying back of the loan is the major problem with using a loan fund to start a business , most of the time , the time of payment actually clashes with the time you want to restock your store .

You can only pay back the loan when your business is successful or you have an external source of generating the loan to pay , but as long as your business is not succeeding you may have difficulty in paying back the money. That is why it is important for us to know the type of business we are going into with a loan.

 

[Setho]

The biggest challenge about starting a business with a loan is that you will have to pay interest at some point and that will always be in your mind because some businesses take time to bring profit.

 

[Smiles20]

If you want to start a business with a loan then there is always that feeling in your mind that you have to pay it with another interest at some point and it might make you to take desperate situations.

 

[Setho]

There are some financial institutions that are just basically cash grab and they are going to be all over you in order to get money from you and you are not even sure of profit.