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❓ASK Is getting a traditional business loan for online business good?

Makaliki

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We all know that getting a traditional business loan from any financial institute have pros and cons that may positively or negatively affect our businesses. Considering the following factors:
1. Eligibility: Before taking a loan a lender will need a Credit History, Financial Records, Revenue and proof of business longevity. How will a financial institute take this for online business?
2. Your personal credit may be put to risk, when the business does not go well (I don't mean to be pessimistic).
3. The cost of repayment of the loan mainly during the first few months.
* Again on the other side of the coin
4. You'll have money to start and running your business considering Inventory, Real Estate, Equipment, payroll and hiring.
5. Investor Financing for an online business can also be pivotal.
I don't to outweigh the pros or sound pessimistic, if I did.
Can a traditional business loan be good for an online business?
 
I was looking at the word traditional loan and perhaps it could have been explianed better as compared to just the normal bank loans.

Generally weather it is online or offline it is a business and you just have to weigh the level of risk for that business.

But it is important to get a loan to improve an already existing business as compared to be a start up and risk it all in a business.The outcome maybe bad or the business may take long to start bringing in revenue.
 
A loan is a loan, what I'm the world does traditional business loan even mean? Anyways, I believe taking up a loan to start a business is a very risky move.
 
Business loans are necessary to run the business activities. In start every business need a huge capital because there are different expenses that incurred in the start and if you are short of capital then you need a business loan to run business activities.
 
Yeah you can get a traditional loan for your online business , but one thing you must have in mind is that the business should be able to repay the loan you have borrowed already , so that you won't be in debt
 
For me,it's normal and more beneficial obtaining a loan for investments and profit recurring projects or ventures rather than getting a loan for consumption purposes....So if you have a good and legitimate online based investment that will surely earn you returns on investment,then go for a loan.But you have to really be careful as so many online investment platforms are scams.
 
Loan becomes a necessity when you do not have enough fund to make your business run smoothly or to start your business. I will not advise to take loan for an online business because it's a business that would not make you profit quickly.
 
I would not even advice anyone to go into any from of loan to startup a business, you are not sure of how the business would go, you would end up working under pressure. Then what happens if it does not go as planned?
 
I don't think any loan is better while setting up a business. A loan should only be considered while expanding a business and not while setting it up. This is because no one knows what may happen to a business having set it up. It may fail and it may succeed but the loan lender will surely collect his money in ether case.
 
I don't to outweigh the pros or sound pessimistic, if I did.
Don't worry: your point of view doesn't mean to be pessimistic, but realistic. Unforeseen events can occur (coronavirus is our last sad example of unforeseen and unpredictable event hitting touristic businesses, first of all). Loans are really very risky, especially if the loan is big and the idea is to cover all the most expensive business stuff (real estate, first of all, but in any way, an online business may avoid real estate expenses, as it's often possible to avoid a physical space).
 
A loan had its positive and negative consequences. So one should plan well before taking a loan for business. Otherwise, it is so much safer to look for other sources of capital for business.
 
We all know that getting a traditional business loan from any financial institute have pros and cons that may positively or negatively affect our businesses. Considering the following factors:
1. Eligibility: Before taking a loan a lender will need a Credit History, Financial Records, Revenue and proof of business longevity. How will a financial institute take this for online business?
2. Your personal credit may be put to risk, when the business does not go well (I don't mean to be pessimistic).
3. The cost of repayment of the loan mainly during the first few months.
* Again on the other side of the coin
4. You'll have money to start and running your business considering Inventory, Real Estate, Equipment, payroll and hiring.
5. Investor Financing for an online business can also be pivotal.
I don't to outweigh the pros or sound pessimistic, if I did.
Can a traditional business loan be good for an online business?
Nice write up and we'll detailed,one of the most inconsistent business is online business,no matter the category and brand,today you might make a whole some of good fortune,the next moment you are struggling.
 
Taking loan is very risky in any form of business. It takes grace to make a success from it. Though online business is still reliable a little ( I mean the possibility of succeeding is positive). One can take loan if you actually planned well.
 
Taking loan is very risky in any form of business. It takes grace to make a success from it. Though online business is still reliable a little ( I mean the possibility of succeeding is positive). One can take loan if you actually planned well.
Yeah, proper planning can enable you take a loan confidently. Otherwise, it is best to look for other sources of income to startup your business. That way, you can evade the risks that come with loans.
 
Though on in can take loan to start a business if the interest rate is not high and if the business one want to use it to is profitable.
 
I would have advised that it is better to use a saving to fund online business than using loan. The risk in loan taking is high and only few scape through this aspect. I can also advise you to take loan from friends rather than bank that will attract interest
 
I am not a fan of taking loan to start up a business at all, no matter the nature of the business, online or offline. But there are situations whereby people do not just find it easy to raise funds, and we have to consider them in things like this and whenever they decide to go the path of taking loan, I think it is okay since they have seen a lot of potential in that particular business idea interested in trying to raise funds to do.
Personally, I have a system of belief that makes me to always raise and source funds for my business so that I do not end up in a miserable state whereby I would be finding it difficult to repay a loan, especially if the business did not meet my expectations in the end.
 
there is actually nothing wrong in taking loan offline to start an online business provided you have proper knowledge and understanding of how it works. I have seen someone who took loan and started cryptocurrency trading. He definitely succeeded because he had proper knowledge of how it works.
 
Anybody that takes loan to run business in the start must run away from personal expenses. Many people fall because of the personal expenses they use money in the business to cater. There should be a way if running both together without problem.
 

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