Major challenges to start a business with loan.

[Maliha]

Borrowing money for starting a business seems simple but in reality it iq not that simple the first issue you get in taking loans for the business is getting approval for the loan it contains diverse stages.so one have to go through the whole process of loan.after getting apprival for loan there is always an issue for managing the money properly it also become difficult to pay back with interest

 

[Mary]

You're right, starting a business with loans is very difficult because of the interest and the collateral attached, the pressure to also get and repay your loan in due time is also a problem on its own

 

[Kamon c4]

Well I don’t agree with you on this. Loan is the best possible way to source for capital provided you’re serious about what you’re doing. Interest is the profit loaners make from loaning money out so I don’t see anything bad in it.

 

[Sincerem]

I can never advice any one starting a business up for the first time to take loans from bank or money lenders. Because such start up loan will make you to think fast and foremost of getting profit to do you loan repayments. You won't concentrate to draw a better plans or be visionary for your newly established business, because you're thinking about two things. Repaying the loan terms and making your own profit to carter for your personal need and improve the business more. So it can work that way, you need to think first the way forward of your business before any other thing, then profit comes after.

 

[Ridorz]

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.

Post automatically merged: Dec 29, 2020

It's very possible to get loan from bank, you can use your worthy property to get loan. But it's not advisable to get loan in the beginning of business. You have to run the business from small scale for a while to have more experience on it and to expert more.

 

[Ehizzy1]

Yeah true and considering the risk involved i think its ,enough for the person to quit starting a loan , because what if the business did not go as planned , so i dont really suppoet that aspect of borrowing loan

 

[Nosheen Rakhshandha]

Major challenges to be after taking loan and start a bussiness is that you should be stable as much as you can to pay first installments. Second challenge is that how you will stand and make place for your busdiness in the market.

 

[Setho]

I have always adviced people that when starting out on a business do whatever you can to avoid a high interest loan. Especially when it is a small business. You can save before time or do it in form of partnership or sell shares early on.if you are so held or invested in the idea, you can consider a no interest or a low interest loan over a long period of time.

 

[chicnthin]

The primary reason why businesses takes the loan option is because of the insufficiency of its capital. However, it comes with great risk. Here are some.

Business won't be profitable for a while, hence its operation is solely relying on loan.

It comes with interest

Collateral that is used to secure the loan will be taken, failure to pay the debts.

That's only few that I could think of right now. Personally I don't like the idea of using debt for financing a business. I prefer to take a loan for a purpose of expansion or fund an already established business.

 

[Tariq Shehzad]

When you start a business, by takkng loan, then you are not so much comfortable as some is, by starting with his own money.
He has to return the from his earning and profit. He is facing financial problem and disturbance.

 

[Damismiling]

It is a bad idea to start a business with a loan , a very great mistake , because the fear of loan repayment and the worries of laon repayment when the business is yet to yield tangible results. Also if the business don't work out as planned you will put your self in a mess

 

[Kaindio Agnes Wanja]

It is not advisable to start a business with a loan when you don't experience in the field of work you need to venture into because it may disappoint you and its a must for you to pay the loan at the end.
So before you take a loan to start a business ,you should first of all gather enough knowledge on how to run thag certain business

 

[Presido]

I don't actually support loans to start a business. It is better to start a small scale business that requires little capital than obtaining loans that you have to meet requirements with collaterals which can pressurize you and the business

 

[Machismo]

Sometimes ago, someone advised me never to start any serious business with loans. Loans have a way of affecting businesses negatively. So it more advisable to fend for capitals from friends and families instead.

 

[Hassan14]

One of the major challenges of starting a business with loan is the fear you have. Try not to start a business with loan because you will have to return it with interest.

We should never start a business with interest because we have to pay too much interest which we are afraid of and we do not succeed in business. And we keep worrying about how we will be able to pay off our debts. Because of this, our focus on business is reduced, which makes our business unsuccessful.
So we should never start business with loan, this is the biggest challenge in this.

 

[Snobar Bilal]

No i think it's wrong to start business with loan because u have to return it with interest and interest is not allowed in our Religion.So business should be start with our own capital.

 

[Mujahid12]

One of the major challenges of starting a business with loan is the fear you have. Try not to start a business with loan because you will have to return it with interest.

Start Business with Loan Is Not Good Way, we may have to face loss in buisness because its interest rate is very high and it cannot manage people in business and it remains a big challenge for people and buisnessman.

 

[MastetG]

I think is the issues of collateral
Collateral is personal or business property ranging from real estate to equipment. It’s required for secured business loans, including many Small Business Administration (SBA) loans, as it serves as a secondary form of payment for a loan in the event of loan default. But new business owners who don’t yet have business infrastructure may have to use their personal home as collateral, which can be risky.

 

[gammarays]

Another challenge we have is the uncertainties that occur presently. We're faced with pandemic and another lockdown is imminent. How do one pay interest on loans when there's no business activity going on. You might be tempted to cater for yourself and family during the lockdown from your loan. Another is inflation and unfavourable government policies.

 

[Chumzy]

I don't ever advice starting up a business with loan. There is always a risk of failing or making it, but with another person's money, if things don't go well from the start, you are likely going to fall. But starting with your money and managing the business to a level, then taking a loan for expansion is the best strategy.