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[Razor1911]

The first step we take for starting any business is the most vital one. The first step needs to be solid, it is the foundation of all your future earnings. The step should be taken with all management plans in mind.

One of the important management is the money management. Most people take loans for starting up a business, which I think has many disadvantages. Taking loan will limit your expenses, increase your liabilities, you need to pay a share of your profit as interest, and most importantly there will be constant burden on your head. That is why if you invest your own savings, you will at least not pay a part of your profit to anyone.

 

[Niftyicon]

I agree totally with your points on the disadvantages and to add to that is the unnecessary pressure one would be under to pay back and sometimes ridiculous interest rates that make servicing those loans tedious.

 

[Razor1911]

I agree totally with your points on the disadvantages and to add to that is the unnecessary pressure one would be under to pay back and sometimes ridiculous interest rates that make servicing those loans tedious.

The artificial pressure that it will create for even a small amount is very high in magnitude. That will effect the one dealing with it and at the initial stage it becomes even more critical.

 

[Damismiling]

Loan is never good enough for a start up business, it is absolutely not advisable to start a business with loan, you can start little With what you have, then later on support with loan but not at the start up

 

[cl0wn]

I would avoid any loans my whole life whenever possible. If you can get on with it without a loan, just don't take it. Unless it is a government some kind of support loan, if the deal is good enough, take a look at something like that. Some types of businesses in EU can apply for financial help with no need to repay the investment. This is obviously a very broad statement, but close enough I'd say.

 

[Razor1911]

Loan is never good enough for a start up business, it is absolutely not advisable to start a business with loan, you can start little With what you have, then later on support with loan but not at the start up

Loan is really important. At initial stage it is better to invest your own amount, but later when your business will grow, then you may need to take loans for growth of your business.

 

[kaycee001]

Taking loans to start up a business has a lot of disadvantages as it put an enormous pressure on you especially if it is a first time business.
it is also risky because if the business doesn't succeed as expected it leaves u with the burden of debt and embarrassment

 

[brinceaabi]

yup you right taking a loan for business is bad idea, so make your own money first to first like do jobs and save money first, but if you have better plan to make a business successful then you have to try loan for a Great business.

 

[Razor1911]

yup you right taking a loan for business is bad idea, so make your own money first to first like do jobs and save money first, but if you have better plan to make a business successful then you have to try loan for a Great business.

Suppose you have started
your business with your own money. And your business is now growing. You want to open another shop in nearby town. Can you do it without taking any loan?

 

[microunit]

Loans can be either good or bad depending on teh success of your business, if you need to run your business right away then a long might be good, though if you're business don't succeed well then the loan will pull you down

 

[Razor1911]

Loans can be either good or bad depending on teh success of your business, if you need to run your business right away then a long might be good, though if you're business don't succeed well then the loan will pull you down

That's what I am suggesting too. At initial stages, since the risk factor is high, better to avoid taking loan. But later when business will grow and you want to expand it, you will definitely need loan for that purpose.

 

[microunit]

That's what I am suggesting too. At initial stages, since the risk factor is high, better to avoid taking loan. But later when business will grow and you want to expand it, you will definitely need loan for that purpose.

Yeah, I've already seen lots of business here that failed alot cause they were pressured by loans so they don't have profit that they could reinvest in their business as their business isn't that thriving much

 

[Pousinha]

Most people take loans for starting up a business, which I think has many disadvantages. Taking loan will limit your expenses, increase your liabilities, you need to pay a share of your profit as interest, and most importantly there will be constant burden on your head. That is why if you invest your own savings, you will at least not pay a part of your profit to anyone.

I too think there are many disadvantages: the worst happens when the startup doesn't prosper as the owner aims. In this case the risk of failure becomes higher because faced with lack of proper income, there still stand a debt to pay off. Usually, is never a good idea to take loans to begin a business. Loans are good for multinational enterprises or in any way large sized companies that have yet reached success.

 

[brinceaabi]

ii think that if you don't have proper knowledge about what you are doing then you take a huge lose in life with taking loan, and other way if you know what you have to do with loan like how you payback and what you with it , your business have liquidity or not there is many things you have to face before and after starting business with loan.

 

[Emmanuel24]

Most places where a business owner make mistakes is that they don't consider the disadvantages of activities that take place in running a business. They go for loan without considering the interest to the profit which is expected to make in the process and later end up in liquidation or bankruptcy. A business owner must be a good economist that would know how to manage the resources of the business.

 

[Razor1911]

Yes, that's also a valid point and practically such things happen too. If the startuo business doesn't prospee, the individual will become depressed as lots of load will come to his heads .

I too think there are many disadvantages: the worst happens when the startup doesn't prosper as the owner aims. In this case the risk of failure becomes higher because faced with lack of proper income, there still stand a debt to pay off. Usually, is never a good idea to take loans to begin a business. Loans are good for multinational enterprises or in any way large sized companies that have yet reached success.

 

[Ehnamuram]

Taking loans for startup is never a good idea from my viewpoint, this is because the future of a startup is never guaranteed, if your startup fails as most startups do, one just ends up depressed and in loans he/she cannot pay back

 

[Razor1911]

Taking loans for startup is never a good idea from my viewpoint, this is because the future of a startup is never guaranteed, if your startup fails as most startups do, one just ends up depressed and in loans he/she cannot pay back

It might look bad from outside, but its a reality that when a businesses is expanding it requires fresh liquid funds in hand, and for that taking loan becomes the only option. All big companies deals with loans only.

 

[Ridorz]

You are right, taking a loan to start a business has a lot of disadvantages. It's very good to save money for business than to take loan, because running business with loan is very risk

 

[Razor1911]

You are right, taking a loan to start a business has a lot of disadvantages. It's very good to save money for business than to take loan, because running business with loan is very risk

Initial stage is the most vital for any business. That is the point which mostly decides whether we can make or break our business. Hence at that time, it is important to remain vigilant with our money. Taking loan should be avoided as much as possible.