Major challenges to start a business with loan.

[WhiteHouse]

NOPE! Do not take a Bank loan when you start your business

Everyone thinks that when you take a bank loan you will have the money to launch your business and when it launches off the ground and becomes successful they can pay the loan back

That plan for success may end in failure, everyone thinks of success and wealth when they start a business but no one thinks about failure and poverty

If your business fails, that Loan you took will put you in poverty, you can’t pay it back because most to if not all your money was invested in your business.


Don’t take loans at the start and Don’t take funding from family and friends at the start because if you do and things go wrong, you will be a in big big problem

 

[olajohn]

Loan for startup business is on of the options for financing a business. But its not the only option sir, I will advise its avoidance if possible. However, if you have to take loan for any business startup, assume the business is not for you until you finally pay up the debt

 

[Chief]

Thanks again for your help with the funds to be a part of your team to get back to work on the same page and I can get a ride home from Michigan and the other one is in the office and I can do that for your time and consideration and the kids together and get

 

[Richard92]

One major problem with starting a business with loan is that you will not be focus on pleasing your customers, your main priority will be to make profit and more profits so you can pay back your loan. It is very fustrating to start a business with loans, the business can only survive when it pays more (huge profit) .

 

[Bookwormlux]

Starting a business with loan isn't completely bad. If you have a nice businesses plan and the location you are based is favorable, you can make enough money to repay the loan in no distant time. It require a high sense of determination and focus to achieve this though.

 

[Asad Ali]

If you can't invest in the business or don't have the money to run the business, doing business with a loan would be tantamount to committing suicide as the business fluctuates.And if you lose money, you will not be able to repay the loan or take over the business.That is, you can say that this is a very risky job and I will never do it.

 

[kayode10]

It will be too risky to run a new business with loan of high interest rate. This is just like smoking weeds on a keg of gun powder. It's advisable to seek angel investor to invest in your business. Rather, you can convince your family and friends to invest in your business and promise to pay a dividend as the business grows.

 

[Pousinha]

I agree with users saying a loan is not a good idea to begin a business but to increase one yet established, except of a loan consisting in a little amount of money. About big loans: point is not only feasibility or not, but 100% imprevisible factors. A big example: how many of us during november 2019 could have imagined the coronavirus pandemic? It broke so many businesses! What having asked for a loan to build up a luxury items shop? Or a travel agency? Imagine you calculated everything (knowledge of the subject, competence rate and level, location, etc.), but there was not the least possibility to calculate a pandemic event such of this current one. I' m conscious, in any way, banks loans worked decades ago, but not now. It's a personal opinion, but I'm convinced as time passes by, imprevisible circumstances would multiply more and more.

It will be too risky to run a new business with loan of high interest rate. This is just like smoking weeds on a keg of gun powder. It's advisable to seek angel investor to invest in your business. Rather, you can convince your family and friends to invest in your business and promise to pay a dividend as the business grows.

To convince family and friends: it strongly depends on our culture. In the uropean countries I better know, especially my former country and south Europe, it 's averagely considered a really bad idea. The reason is soon explained: what if you lose not only your money, but your family and friend's? What if your best friend gave you the money he saved for his children's university, you lose it because an imprevisible event occurred damnifying your business and you can't give the money back? When I was a just graduate (first degree), not yet married and my parents still alive, I asked their help to open a business after a received proposal of franchising. They flatly refused without the possibility of parole, in spite of owning more than 10 times the amount I was in need to begin. And south Europe wasn't broken like today is. But my parents disliked whatever risk rate, fearing imprevisible events where I could lose their money. I don't blame them for their decision.

 

[Farhan Aslam]

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.

Before starting any business, we have to get rid of our fears and anxieties. It starts with houses and bravery, in which both profit and loss go hand in hand. It would be foolish for us not to start a business at a loss.

 

[Patrik]

Paying back the loan with interests isn't the main issue, the main issue is paying the loan with no profit to receive from that business at the first place, that's why you should put your program before launching the business

 

[Alexandoy]

Based on my experience when starting up with a business you should have a capital that is double the amount of your estimated capitalization needs. The extra money is to make it comfortable when the business will experience financial problems like if there is abrupt progress that purchasing a bulk of supplies would need a big cash amount. Some people think that they can make a business out of borrowed money. It can be done and it has been done by some but it is not a good idea.

 

[Adexgrace]

Business which are started with loan have a lot of challenges, as the business have to manage growth, relationship with customers and also manage repaying of the loan. Such business will lose their major on the business and majorly focus on payment on the loan back from the income of the business.

 

[Trexxxy]

Honestly I don't see anything bad with starting a business with a loan , if there is a measure of guarantee that the business is going to be a success. Most of the big companies take pocket friendly loans from big banks and investors to kick start the business.

 

[Hasan Raza]

There would be mony challanges while taking loan for a small business because the bank or the financial institutions which provide you loan will take guarantee against loan and that would be documents of your any ownership.
The major challange is the fear of not running a business and you may face double loss.

 

[Sariana23]

To start a business with a loan, it is preferable that you have the debt with friends and family, since if the debt is bank it is uphill and risky. The interests consume you and the pressure is great. It is better to find a way to save, a partner or have other people. Since when starting a business you do not have stability until after a while.

 

[Ltherman]

Starting a business with loans is not advisable especially if you are not too knowledgeable about the business you want to start, as a rookie in the business world, the best method to source for funds for your business is through personal savings and contribution from families and friends.

Loan for Businesses are mostly good for experienced business owner who wants to expand their Businesses as they are very knowledgeable about the business already. These are the people banks mostly grants loans.

This is just the best response starting off with a loan maybe dangerous, what if something untold happens how do will you repay?
Its better to start bootstrapping and after gaining insight and experience you can borrow to expand with the knowledge gained.

 

[MastetG]

Obtaining a loan to start an unprovenbusiness is indeed a bad idea. Obtaining aloan to start a franchise location usually is agood idea. ... A business loan will often have worse terms and require lots of paperwork. Functionally, a business credit card is a form of a loan.

 

[giddy]

I do not advice starting a business with a loan
In fact, sometimes you can get started with little to no funding. (Yes!) Starting a businesswith no money might initially seem like a far-fetched idea, but it's not impossible. It's true that to start and scale any business, you're going to need more than just extra cash flow.

 

[Bilal0087]

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.

I don't think it a wise decision to start a business with loan money. because in this way a person can never be feel himself free, and he would not be able to pay full attention to the development of business, he will always remain in tension of returning money.

 

[haider00]

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.

Yes you are right one more problem is that many people and investors consider it time wasting and also they do not account for the great number of people who run away.