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A lot of businesses are coming up inspite the fact that the economic situation is not fair. Do you think it is wise to start a particular business with loans from banks or friends?
Can you start up a business with loan?
- Thread started by Henrywrites
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I agree with you on this. Sometimes, focusing on loans for business may not end up well especially for new businesses.
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Are you saying that a lot of businesses began with a loan?
Sometimes I feel loan money are cursed. I'm being too superstitious right?
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You can but it would be extremely dangerous and unwise to do so.
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It is unwise to start a new business with loan. A business that you don't even know anything about. That is where the challenge comes in.
It's wrong to start up any business at all when you're lacking in it.
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Lacking by knowledge or capital or both?
I'm talking about having capital but with no knowledge. But you can pay for the knowledge anyways.
Never took a loan in my life and I'm not planning to now either.
Seriously, it's the last resort for me if it's a must I do the business.
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I think taking out a small loans like a few hundred to thousands of dollars is less risky to start a small business because some borrowers can pay back the loan by finding another job which pay enough to afford the monthly payments, or they can sell their possessions like jewelry, bicycle, and antiques which they are willing to sell if they are struggling to repay the loan on time.
Taking out a bigger loan like $10000 dollars can be more risky if someone don't own anything worth $10000 or more, or unlikely to find a job where they can earn enough money where they can afford the monthly payments.
Taking out a bigger loan like $10000 dollars can be more risky if someone don't own anything worth $10000 or more, or unlikely to find a job where they can earn enough money where they can afford the monthly payments.
Over here in my country, no financial establishment gives a big loan without getting a valuable collateral in return in case you default in paying back.
I won't even resort to it. It's not an option in my eyes.
It's good to have a very firm decision and stick to it at all cost.
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Wise decision that you made, I must commend. It is better than just getting hooked up by these loan guys.
And some of their interest rates are very high and they keep getting bigger when you fail to pay as and at when due.